The price of a ranchette estate is $260,000. The bank requires a 15% down payment and 3 points at the time of closing. The cost

Question

2 years ago

10

of the ranchette is financed with a 30-year fixed-rate mortgage at 7.45%. What is the mortgage amount? *

1 answer:

coldgirl [10] · Answer 1 · 2022-09-17T07:32:04+03:00

Answer:

Missing word<em> "and the cost of one point at the time of closing"</em>

<em />

Down payment = $260,000*15%

Down payment = $260,000*0.15

Down payment = $39,000

Amount of mortgage = $260,000 - $39,000

Amount of mortgage = $221,000

Cost of 3 point at the time of closing = 3% of amount of mortgage

Cost of 3 point at the time of closing = 3% * $221,000

Cost of 3 point at the time of closing = $6,630