The price of a home is $320,000. The bank requires an 8% down payment and three points
at the time of closing. The cost of the home is financed with a 30year fixed rate at 6%.
Find the amount that must be paid for the three points at closing & Find the monthly payment.
 👍
 👎
 👁
 ℹ️
 🚩
2 answers

Given:
purchase price = 320,000
down payment = 8%
mortgage bought down (to 6%) with 3 points (3%).
Term, n= 30 years
rate, i=6% per annum = 6%/12 = 0.005
compounding frequency = monthly (ASSUMED).
Solution:
Down payment = 8% * 320,000 = 25,600
Loan, P = 320,000  25,600 = 294,400
Cost of 3 points = 3% * 294,400 = 8832 (amount to be paid at closing)
Monthly payment = Pi(1+i)^(12n)/((1+i)^(12n)1)
=294400*0.005*(1.005^(12*30))/(1.005^(12*30)1)
=1765.0767
=1765.08 (to the nearest cent). 👍
 👎
 ℹ️
 🚩
MathMate 
what problem can solved by using GCF.
 👍
 👎
 ℹ️
 🚩
Alex
Answer this Question
Related Questions

accounting
Tracy Migre, a certified public accounting, has completed the following transactions. Ms.Migres assests , liabilites, and owner equity account titles and balances are shown in the table below. use the table on the page to show the effect of each

f
You have just purchased a new warehouse. To finance the purchase, you’ve arranged for a 35year mortgage for 85 percent of the $3,100,000 purchase price. The monthly payment on this loan will be $17,200. What is the APR on this loan? What is the EAR on

Real Estate
An owner lists his home and agrees to pay a 6% commission provided he nets $10,000 after paying the commission and the balance of his mortgage, which is $75,000. To the nearest dollar, what should the selling price be to net the owner his $10,000?

math
Chiara purchased a new natural gas barbecue for $2,500 and made a down payment that was 30% of the purchase price. She financed the remaining balance for 9 months at an annual interest rate of 5.5% compounded monthly. What is Chiara's monthly payment?

MATH
In order to make some home improvements, a home owner spent $24,000. He paid 18% as a down payment and financed the balance of the purchase with a 36month fixed installment loan with an APR of 4.5%. Determine the home owner's total finance charge and

Finance
Loan Payments  If you take out an $8,000 car loan that calls for 48 monthly payments APR of 10 percent, what is your monthly payment? What is the effecgive annual interest rate on the loan? the montly rate is 0.10/12=.0083333... then 8000=

mathematic
At a price of $9 per box of oranges, the supply is 320,000 boxes and at a price of $8.50 per box, the supply is 270,000 boxes. Find the supply equation of the form p = mq + c, where p is the price in dollars and q is the corresponding supply in thousands

math
If a TV set is bought on the installment plan there is a down payment of $25 and 12 monthly payments of $15 each. The same set may be bought for cash at 12% less than the installment price. The amount saved by making a cash payment is:

math
Janet Home went to Citizen Bank. She borrowed $7,000 at a rate of 8 percent. The date of the loan was September 20. Janet hoped to repay the loan on January 20. Assuming the loan is based on ordinary interest, Janet will pay back interest on January 20:

statistics
If the average price of a new single family home is $246,300 with a standard deviation of $15,000, find the minimum and maximum prices of the houses that a contractor will build to satisfy the middle 80% of the market. Assume home prices are approximately

Math Please Help
The demand equation for a certain brand of GPS Navigator is x + 3p  565 = 0, where x is the quantity demanded per week and p is the wholesale unit price in dollars. The supply equation is x  16p + 480 = 0, where x is the quantity the supplier will make

Math
A couple buys a $170000 home, making a down payment of 18%. The couple finances the purchase with a 15 year mortgage at an annual rate of 2.75%. Find the monthly payment.

math
Bob and Joy Salkind want to save $50,000 in 5 ½ years for home improvement projects. If the Bank of Aventura is paying 8% interest compounded quarterly, how much must the couple deposit now to have the money for the projects

Math
A house worth $350,000 when purchased was worth $335.000 after the first year and $320,000 after the second year. If the economy does not pick up and this trend continues, what will be the value of the house after 6 years. A) determine if is arithmetic or

Accounts
Katie's Vegetarian Restaurant, with total assets of $90,000, borrows $15,000 from the bank. Which of the following is a true statement upon borrowing the money? Total assets are now $105,000. Total assets are now $80,000. Total assets are now $15,000.

algebra
The table show the median home prices in Florida what is the equation of a trend line that models a relationship between time and home prices use the equation to predict the median home price in 2040? Year 1940 median price 23,800 Year 1950 median 40,900

economics
Suppose that there are three beachfront parcels of land available for sale in Asilomar and six people who would each like to purchase one parcel. Assume that the parcels are essentially identical and that the minimum selling price of each is $600,000. The

math
1. Eliza Savage received a statement from her bank showing a checking account balance of $324.18 as of January 18. Her own checkbook shows a balance of $487.38 as of January 29. The bank returned all of the cancelled checks but three. The amounts of these

Math
A computer is normally $550 but is discounted to $385. What percent of the original price does Mark pay? A. 16.5% B. 30% C. 65% **D. 70% The $199.99 digital camera Anne purchased was on sale for 15% off. What amount did Anne get off the price? A. $15 B.

Economics
Are these accurate? 2)The manager of All City realtors wants to hire some real estate agents to specialize in selling housing units acquired by the Resolution Trust Commission (RTC) in its attempt to bail out the savings and loan industry. The commission
Still need help?
You can ask a new question or browse existing questions.