McGraw Hil Connect ×yD Module 4 Homework | Not secure l eztomiheducation.com/hm.
ID: 2592001 • Letter: M
Question
McGraw Hil Connect ×yD Module 4 Homework | Not secure l eztomiheducation.com/hm.tpx?-=0.8303405257625037-151286 1765975 Sharon Fox decided to buy a home in Marblehead, Massachusetts, for $285,000 Her bank requires a 20% down payment Sue Willis, an attorney has notified Sharon that besides the 20% down payment there will be the following additional costs Recording of the deed A credit and appraisal report Preparation of appropriate documents $40.00 165.00 58.00 In addition, there wil be a transfer tax of 2% of the purchase price and a loan origination fee of 2% of the mortgage amount Assume a 30-year mortgage at a rate of 10.5% a. What is the initial amount of cash Sharon w need? (Do not round intermediate calculations. Round your answer to the nearest cent.) Initial amount b. What is her monthly payment? (Do not round intermediate calculations.Round your answer to the nearest cent.) Monthly payment c. What is the total cost of interest over the life of the mortgage?(Use 360 days a year. Do not round intermediate calculations. Round your answer to the nearest cent.) Total cost of interest References eBook &Resources;Explanation / Answer
martogage amount = Asset value - Down payment =$285000 - ($285000*20%) =$242250 (a) What is the initial amount of cash sharon will need Amount in $ Down payment 20%$285000 57000 deed cost 40 credit & appraisal report 165 Prepartion of Coporate docments 58 Transfer tax 2% *%285000 5700 Loan origination fee 2%*$242250 4845 Initial cash needed 67808 (b) What is Monthly payment Loan amount =$242250 Monthly interest =10.50%/12 =0.875% =0.00875 term =30years =30*12months =360 Months Monthly instalment = P*r* (1+r)^n /[(1+r)^n -1] P = Mortogage amount =$242250 r=0.00875 (1+r)^n = ( 1+0.00875)^360 =23.0185 Monthly instament =$242250 *0.00875*23.0185 /(23.0185-1) Monthly instament =$242250 *0.00875*23.0185 /(23.0185-1) =$2215.96 © total Cost of Interest og Mortogage Monthly Instament $2215.96 Total instaments 360 Total Amount paid 797745.6 Less: Loan amount 242250 Total interest cost 555495.6