Question
Question 3 (Part A-D) A person was considering buying a house priced at $350,000. A mortgage company claimed the interest rate for the 30-year loan
Question 3 (Part A-D)
A person was considering buying a house priced at $350,000. A mortgage company claimed the interest rate for the 30-year loan is 2.75%. The company also estimated that the points and Appraisal, Credit Report, Processing, Document Preparation, Administration, Underwriting, Flood Certificate, Tax Service, Wire Transfer, and other fees would be $15,000 in total.
A) What would be the monthly payment, if the person decided to borrow 80% of the cost of the house and 100% of the processing fees?
Group of answer choices
$8,112.97
$1,204.31
$1,614.43
$1,599.39
B) What is the APR of the loan?
Group of answer choices
0.23%
3.16%
3.33%
2.78%
C) If the person accepts the terms of the loan on Feb. 29, 2016, the first monthly payment is due on March 31. How much mortgage would have been paid off after the payment on February 28, 2021?
Group of answer choices
$32,729.17
$261,062.90
$72,258.69
$33,937.10
$33,332.45
D) How much interest charge could this person claim for deduction in the 2020 Tax Return, i.e. the total interest occur during year 2020?
Group of answer choices
$8,112.500
$7,319.14
$6,725.81
$14,451.74
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