mortage question

Question

The price of the home is 230,000. Bank requires a 20% down payment and three points at time of closing. The close of the home is financed with a 30 yr fixed rate mortgage at 9.5%.

A. what is down payment?

b. what is mortgage payment?

c. how much be paid for 3 points at closing?(round to nearest dollar as needed)

d. find the monthly payment( excluding escrowed taxes and insurance) round if needed

Answer 1

A) The down payment is 20% of $230,000 = $46,000. Therefore the loan amount is $184,000

B) $1,535.02

C) With 3 points or 3% of the loan amount = .03(184,000) = $5,520

D) This is the same as the mortgage payment as noted above. This assumes the points money is paid up front and not included in the loan amount. If it is included with the loan amount, the loan amount would then be $184,000 + $5,520 = $189,520

If this is the loan amount, the monthly payment will be $1,581.07