To determine the total mortgage amount for a \[tex]$220,000 purchase with a 20% down payment and the specified closing costs, follow these steps:
1. Calculate the Down Payment:
- The down payment percentage is 20%.
- Down payment = 20% of \$[/tex]220,000
- Down payment = 0.20 * \[tex]$220,000
- Down payment = \$[/tex]44,000
2. Calculate the Loan Origination Fee:
- The loan origination fee percentage is 1%.
- Loan origination fee = 1% of \[tex]$220,000
- Loan origination fee = 0.01 * \$[/tex]220,000
- Loan origination fee = \[tex]$2,200
3. Calculate the Documentation Stamp Fee:
- The documentation stamp fee percentage is 0.50%.
- Documentation stamp = 0.50% of \$[/tex]220,000
- Documentation stamp = 0.005 * \[tex]$220,000
- Documentation stamp = \$[/tex]1,100
4. Add All the Closing Costs:
- Given closing costs: Credit report = \[tex]$400, Loan origination fee = \$[/tex]2,200, Attorney and notary = \[tex]$500, Documentation stamp = \$[/tex]1,100, Processing fee = \[tex]$500
- Total closing costs = \$[/tex]400 + \[tex]$2,200 + \$[/tex]500 + \[tex]$1,100 + \$[/tex]500
- Total closing costs = \[tex]$4,700
5. Calculate the Total Mortgage Amount:
- The mortgage amount will be the purchase cost minus the down payment plus the total closing costs.
- Total mortgage = (Purchase cost - Down payment) + Closing costs
- Total mortgage = (\$[/tex]220,000 - \[tex]$44,000) + \$[/tex]4,700
- Total mortgage = \[tex]$176,000 + \$[/tex]4,700
- Total mortgage = \[tex]$180,700
Therefore, the total mortgage amount for a \$[/tex]220,000 purchase with a 20% down payment and the specified closing costs is \$180,700.
