Question

Jason is purchasing a condominium for $336,500 and has financed 90% of it. He has purchased
2 discount points, has to pay a 1.95% origination fee and a brokerage fee of $100 plus 0.30% of the loan. What are his total fees that he must pay?

$12,618.75

$12,971.13

$13,475.88

$12,802.88

Answer 1

i told u guys this was tough jizz

Answer 2

Tell me about it! D:

Answer 3

i completely dont understand this at all

Answer 4

So.
Many.
Numbers. 0.0

Answer 5

Pretty easy, bu lots of calculating and writing :P

Answer 6

So he is financing 90% which is $302,850

Answer 7

school slacker if u can solve this u are my hero

Answer 8

brokerage fee of $100
0.3% of loan is %908.55

Answer 9

$*

Answer 10

1.91% percent is the discount or another payment?
and i dont get what he means by 2 discount points

get that through me and the answer is close

Answer 11

1.95*

Answer 12

I didn't get the 2 discount points either. I got stuck at that part.

Answer 13

also is th 1.95%, $100 and the .3% of loan per discount point or for both

Answer 14

i going to google what discount points are

Answer 15

Points, sometimes also called a "discount point", are a form of pre-paid interest. One point equals one percent of the loan amount.

Answer 16

oyyy i hate math

Answer 17

hmm my searching says they are related to the interest on the loan

Answer 18

A type of prepaid interest mortgage borrowers can purchase that lowers the amount of interest they will have to pay on subsequent payments. Each discount point generally costs 1% of the total loan amount and depending on the borrower, each point lowers your interest rate by one-eighth to one one-quarter of your interest rate. Discount points are tax deductible only for the year in which they were paid.

Read more: http://www.investopedia.com/terms/d/discountpoints.asp#ixzz1v9DiFSca

Answer 19

A type of prepaid interest mortgage borrowers can purchase that lowers the amount of interest they will have to pay on subsequent payments. Each discount point generally costs 1% of the total loan amount and depending on the borrower, each point lowers your interest rate by one-eighth to one one-quarter of your interest rate. Discount points are tax deductible only for the year in which they were paid.

Answer 20

lol the fallen we got the same thing

Answer 21

Just think P.B.
This will be very helpful if you ever decide to
buy a house! :D

Answer 22

So we did. o.0

Answer 23

right lets just the calculation for both ways and see if one of them matches the answer

Answer 24

ok

Answer 25

come school slacker you got this!

Answer 26

so far we have
100
908.55
302,850
=303,858.55

left to add or take away
1.95 thing
2 discount points stuff



if discount point is 1percent of loan then 3028.5 per point
2 points =6057
its a dicount so take away from total so far = 297,801.55

Answer 27

1.95 thing must mean something cos we arent even close to the given answers

Answer 28

true

Answer 29

hmm i have an idea brb

Answer 30

nope that didnt work either

in the second paragraph it says 2 dicount points, has to Who has to?

Answer 31

hey you gave it your best shot, i'll just take an educated guess on it. i have another problem that i need help with as well. wanna help

Answer 32

Calculate the documentary stamp tax on the mortgage if this fee in your state is $0.35 per $100 or portion thereof.
Determine how many mortgage points will be purchased and calculate the cost.
Determine the mortgage broker fee and calculate the cost

Answer 33

I got the answer for the first question, its 12,971.13

Answer 34

thanks u soooooo much.
couldmaybe help me with the second one

Answer 35

@SchoolSlacker. Awesome work. :)

Answer 36

Back
@The_Fallen Thank You

So the second one

the mortgage was 302,850
so $0.35 per every $100 will be around(doing in my head so not very accurate) $1059.98

Answer 37

theres no real information on how the mortgage broker will decide his fee, how mortgage points are affected by any of the information previously given, also these two questions are linked right?

Answer 38

yes