Subjects finance

Total Mortgage

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Total Mortgage


1. **State the problem:** Calculate the total mortgage amount for a $180,000 home purchase with a 10% down payment and given closing costs. 2. **Calculate the down payment:** The down payment is 10% of $180,000. $$\text{Down payment} = 0.10 \times 180000 = 18000$$ 3. **Calculate the loan amount before closing costs:** Subtract the down payment from the purchase price. $$\text{Loan amount} = 180000 - 18000 = 162000$$ 4. **Calculate each closing cost:** - Credit Report: $300 - Loan origination fee: 1% of loan amount $$0.01 \times 180000 = 1800$$ - Attorney and notary: $500 - Documentation stamp: 0.50% of purchase price $$0.005 \times 180000 = 900$$ - Processing Fee: $600 5. **Sum all closing costs:** $$300 + 1800 + 500 + 900 + 600 = 4100$$ 6. **Calculate total mortgage:** Add loan amount and closing costs. $$162000 + 4100 = 166100$$ **Final answer:** The total mortgage amount is $166100.