Question
Sharon Fox decided to buy a home in Marblehead, Massachusetts, for $284,000. Her bank requires a 30% down payment. Sue Willis, an attorney, has notified
Sharon Fox decided to buy a home in Marblehead, Massachusetts, for $284,000. 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: Recording of the deed $39.00 A credit and appraisal report 164.00 Preparation of appropriate documents 57.00 In addition, there will be 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%. a)What is the initial amount of cash Sharon will need? B) What is her monthly payment? C) What is the total cost of interest over the life of the mortgage?
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