Answered step by step
Verified Expert Solution
Question
1 Approved Answer
can you help me? Thank you in advance CHAPTER 14 . MORTGAGES Adam Marsh is purchasing a $134,000 condominium apartment. The down payment is 20%,
can you help me? Thank you in advance
CHAPTER 14 . MORTGAGES Adam Marsh is purchasing a $134,000 condominium apartment. The down payment is 20%, and the balance will be financed with a 20-year fixed-rate mortgage at 8.75% and 3 discount points. The annual property tax is $1,940, and the hazard insurance premium is $1,460. When Adam signed the original sales contract, he put down a deposit of $10,000, which will be credited to his down payment. In addition, at the time of closing, he must pay the following expenses: Appraisal fee $165 Credit report $75 Attorney's fees $490 Roof inspection $50 Termite inspection $88 Title search $119 Mortgage insurance premium 1.2% of amount financed Documentary stamps % of amount financed As Adam's real estate agent, he has asked you the following questions: a. What is the total monthly PITI of the mortgage loan? b. What is the total amount of interest that Adam will pay on the loan? c. How much is due at the time of the closing Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started