Respuesta :
The required down payment is $44600 and the amount of mortgage that must be paid for the 3 points at closing is $49,952.
How to find the Total Cost?
From the question, we see that the price of the home is given as $223000 and that the bank required a down payment of 20%.
Now, this down payment is at 3 points at time of closing the cost of the home and financed with a 30 year fixed rate mortgage at 7%. Thus, we can express these statements as;
We are given;
Price of Home = $223000
Percentage down payment required = 20%
Points at time of closing home cost = 3 points
Thus;
Down payment = 20% * 223000 = $44600
Now, amount to be financed will be;
223000 * 80% = $178,400
3 point means 3% of amount financed has to be paid at closing = 178400 * 3% = $5352
Thus, total amount to be paid at closing is;
Total Amount = 44600 + 5352
Total Amount = $49,952
Thus, we conclude that the required down payment is $44600 and the amount of mortgage that must be paid for the 3 points at closing is $49,952.
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