Sharon Fox decided to buy a home in Marblehead, Massachusetts, for $266,000. Her bank requires a 20%
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Sharon Fox decided to buy a home in Marblehead, Massachusetts, for $266,000. Her bank requires a 20% down payment. Sue Willis, an attorney, has notified Sharon that besides the 20% down payment there will be the following additional costs:
Recording of the deed | $21.00 |
A credit and appraisal report | 146.00 |
Preparation of appropriate documents | 39.00 |
In addition, there will be a transfer tax of 2% of the purchase price and a loan origination fee of 2% of the mortgage amount. Assume a 30-year mortgage at a rate of 10.5%.
a. What is the initial amount of cash Sharon will need? (Do not round intermediate calculations.
b. What is her monthly payment? (Do not round intermediate calculations.
c. What is the total cost of interest over the life of the mortgage?
Related Book For
Foundations of Financial Management
ISBN: 978-1259194078
15th edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
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