Question
Sharon Fox decided to buy a home in Marblehead, Massachusetts, for $264,000. Her bank requires a 30% down payment. Sue Willis, an attorney, has notified
Sharon Fox decided to buy a home in Marblehead, Massachusetts, for $264,000. Her bank requires a 30% down payment. Sue Willis, an attorney, has notified Sharon that besides the 30% down payment there will be the following additional costs: (Use Table 15.1.).
Recording of the deed | $19.00 |
A credit and appraisal report | 144.00 |
Preparation of appropriate documents | 37.00 |
Other closing expenses include a transfer tax of 1.8% of the purchase price and a loan origination fee of 2.5% of the mortgage amount Assume a 30-year mortgage at a rate of 10.0%.
a. What is the initial amount of cash Sharon will 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 $
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