You are considering purchasing a home in LA for $975,000. Search for the current 30-year fixed mortgage rate. Assume 20% down payment to determine your monthly payment (all fees from the practice problem). Calculate the amount you will need at closing, your monthly mortgage and any monthly taxes you would owe for the home. Closing Costs: - Points = 1% (look up what this is) - Origination Fee % = 0.5% (look up what this is) - Appraisal Fee = $300 - Home Inspection = $300 - Escrow Fee % = 0.2% (look up what this is) - Pre-Paid Property Tax & Insurance (1 mo) (look up what this is) Loan Amount: - Calculate loan amount (does not include down payment) - PMT formula for monthly payment - Find current Mortgage Interest Rate for the amount of the home (30 yr. fixed) Other Monthly Costs: - Estimate the monthly property tax (1%) (look up what this is) Monthly homeowners insurance = $100