Jason Bradley decided to buy a home for $271,000. His bank requires a 25% down payment. His attorney, has notified Jason that besides the 25% down payment there will be the following additional costs:

Recording of the deed                           $266.00  

A credit and appraisal report                 1521.00  

Preparation of appropriate documents    444.00  

In addition, there will be a transfer tax of 1.5% of the purchase price and a loan origination fee of 3% of the mortgage amount. Assume a 30-year mortgage at a rate of 9.5%.

a.    What is the initial amount of cash Jason will need? (Do not round intermediate calculations. Round your answer to the nearest cent.)  

b.    What is his monthly payment?

c.    What is the total cost of interest over the life of the mortgage? 

Answer rating: 100% (QA)

please find the attached explanation b Monthly Payment 271000 ... View the full answer