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Mariulka [41]
3 years ago
8

g 4. The price of a home is $197,000. The bank requires 20% down payment and four points at closing. The cost of the home is fin

anced with a 30-year fixed-rate mortgage at 4.25%. a. Find the required down payment. b. Find the amount of the mortgage. c. How much will be paid for the four points at closing
Business
1 answer:
Molodets [167]3 years ago
4 0

Answer:

a. $39,400

b. $157,600

c. $6,304

Explanation:

a. Down payment

Bank requires 20% down payment

= 20% * 197,000

= $39,400

b. Mortgage amount

= Price of house - down payment

= 197,000 - 39,400

= $157,600

c. Amount at 4 points:

= Mortgage * 4%

= 157,600 * 4%

= $6,304

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