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What is the total mortgage for a \[tex]$280,000 purchase, a 5\% down payment, and the closing costs shown in the table?

\[
\begin{tabular}{|l|r|}
\hline
Credit Report & \$[/tex]300.00 \\
\hline
Loan Origination Fee & 1\% \\
\hline
Attorney and Notary & \[tex]$500.00 \\
\hline
Documentation Stamp & 0.50\% \\
\hline
Processing Fee & \$[/tex]400.00 \\
\hline
\end{tabular}
\]


Sagot :

To determine the total mortgage for a [tex]$280,000 purchase with a 5% down payment and the closing costs shown in the table, let's break it down step-by-step: ### 1. Calculate the down payment: The down payment is 5% of the purchase price. \[ \text{Purchase Price} = \$[/tex]280,000 \]
[tex]\[ \text{Down Payment} = 0.05 \times 280,000 = \$14,000 \][/tex]

### 2. Calculate the individual closing costs:
- Credit Report: \[tex]$300.00 - Loan Origination Fee: 1% of the purchase price. \[ \text{Loan Origination Fee} = 0.01 \times 280,000 = \$[/tex]2,800 \]
- Attorney and Notary: \[tex]$500.00 - Documentation Stamp: 0.50% of the purchase price. \[ \text{Documentation Stamp} = 0.005 \times 280,000 = \$[/tex]1,400 \]
- Processing Fee: \[tex]$400.00 ### 3. Total closing costs: Add up all the individual closing costs: \[ \text{Total Closing Costs} = 300 + 2800 + 500 + 1400 + 400 = \$[/tex]5,400 \]

### 4. Calculate the total mortgage amount:
The total mortgage amount is calculated as the purchase price minus the down payment plus the total closing costs.
[tex]\[ \text{Total Mortgage} = \text{Purchase Price} - \text{Down Payment} + \text{Total Closing Costs} \][/tex]
[tex]\[ \text{Total Mortgage} = 280,000 - 14,000 + 5,400 = 266,000 + 5,400 = \$271,400 \][/tex]

### Summary:
- Down Payment: \[tex]$14,000 - Total Closing Costs: \$[/tex]5,400
- Total Mortgage: \[tex]$271,400 Therefore, the total mortgage is \$[/tex]271,400.
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