jason is closing on a $430,000 home. he made a 10% down payment and is borrowing the rest. closing costs are 3.5 percent of the mortgage.

a. what is the down payment?

b. what is the amount of the mortgage?

c. what are the closing costs?

d. what is the total amount of the mortgage if they finance the closing costs with the mortgage

Answers

Answer 1

The total Amount of the mortgage is $400,545 if the closing costs are financed with the mortgage.

a) The down payment of Jason is 10% of $430,000 =$43,000b) The amount of the mortgage is the difference between the home value and the down payment.

Mathematically, $430,000 - $43,000 = $387,000.c) The closing costs are 3.5% of the mortgage. So, 3.5% of $387,000 is: 0.035 × $387,000 = $13,545.

Hence, the closing costs are $13,545. d) The total amount of the mortgage if they finance the closing costs with the mortgage is the sum of the amount of mortgage and the closing cost.

So, the total amount of the mortgage is: $387,000 + $13,545 = $400,545.Solution:a) Jason's down payment is 10% of the cost of the house, which is given as $430,000.

To calculate the down payment, multiply the cost of the house by 10%.Down payment = $430,000 x 10% = $43,000

Therefore, Jason's down payment is $43,000.b)

The amount of the mortgage is the difference between the total cost of the house and the down payment. The cost of the house is given as $430,000.

Thus, we have:Mortgage amount = Total cost - Down paymentMortgage amount = $430,000 - $43,000Mortgage amount = $387,000

Therefore, the amount of the mortgage is $387,000.c) The closing costs are 3.5% of the mortgage.

Using the mortgage amount calculated in part b), we can compute the closing costs as follows:Closing costs = 3.5% x Mortgage amountClosing costs = 3.5% x $387,000

Closing costs = $13,545

Therefore, the closing costs are $13,545.

d) If the closing costs are financed with the mortgage, we simply need to add the closing costs to the mortgage amount calculated in part b):Total amount of the mortgage = Mortgage amount + Closing costsTotal amount of the mortgage = $387,000 + $13,545

Total amount of the mortgage = $400,545

Therefore, the total amount of the mortgage is $400,545 if the closing costs are financed with the mortgage.

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[tex]\green{\boxed{-answer-}}[/tex]

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Answer:

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Answers

Answer:

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