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4 ) . The price of a home being purchased is $ 3 1 0 , 0 0 0 . The bank requires a 5

4). The price of a home being purchased is $310,000. The bank requires a 5% down payment,
and will provide a mortgage for the remaining amount. A one point fee (1% fee) must be paid to
the bank as a closing cost. Reminder: the closing cost is a percentage of the mortgage
amount, not the price of the house. The mortgage is financed with a 30-year fixed-rate
mortgage at 8%. Use the provided information to answer the questions below.
a). Find the required downpayment amount.
b). Find the amount of the home mortgage.
c). How much must be paid for the one point closing cost fee?
d). Find the monthly mortgage payment (we are not considering any taxes, insurance, or
additional fees, just the mortgage payment).
e). At the end of the 30-year mortgage, if only the minimum monthly payment is made each
month and no part of the loan is paid off early, what will be the total amount paid on the
mortgage (this is the principle plus the interest in regards to the home mortgage)?

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