The price of a home is $131,000. The bank requires a 20% down payment and three points at the time of closing........

Question

The price of a home is $131,000. The bank requires a 20% down payment and three points at the time of closing. The cost of the home is financed with a 30 year fixed rate mortgage at 7%

Answer 1

Down payment is 20%*131000= $26,200.

131000*80% = $104,000 = amount to be financed

3 point mean 3% of amount financed has to be paid at closing = 104000*3% = $3,144

total amount to be paid at closing = 26,200+3,144 = $29,344.