Question

Jakob is purchasing a condominium for $347,500 and has financed 90% of it. He has purchased
2 discount points, has to pay a 1.75% origination fee and a brokerage fee of $100 plus 0.25% of the loan. What are his total fees that he must pay?

Answer 1

what were your answer choices again?

Answer 2

@ jim_thompson5910
$12,610.01
$13,031.25
$13,218.13
$13,913.13

Answer 3

ok thanks

Answer 4

if he bought it for "$347,500 and has financed 90% of it."

then how much is being loaned to him?

Answer 5

it is not mentioned :/

Answer 6

well what's 90% of the price of the home

Answer 7

312,750

Answer 8

so that's the amount being financed (ie loaned out)

Answer 9

He has purchased 2 discount points

what does that mean?

Answer 10

this is a very important home buying term/concept

Answer 11

2 discount points is basically like 2% of your loan amount.

Answer 12

what about 2% of your loan

Answer 13

then that is 6,255

Answer 14

so that's how much it costs to purchase 2 discount points

Answer 15

then he " has to pay a 1.75% origination fee "

so 1.75% of price of home = ??

Answer 16

5,254.20?

Answer 17

312750*0.0175 = 5,473.125

Answer 18

so that rounds to 5473.13

Answer 19

that's the origination fee

Answer 20

then you have to add on " a brokerage fee of $100 plus 0.25% of the loan"

Answer 21

what do you get for that part

Answer 22

5,573.13

Answer 23

hold on I did something wrong

Answer 24

you might have done 25%

it's 0.25%

Answer 25

100 plus 5,473.13=5,573.13+0.25=5,587.06

Answer 26

that's too big, the brokerage fee is much smaller

Answer 27

again, it's NOT 25%

it's 0.25%

Answer 28

it should be this

100+0.0025*312750 = 881.875

so the brokerage fee is $881.88

Answer 29

now add up the discount points, the origination fee, and the brokerage fee to get

6255+5473.13+881.88 = 12,610.01

Answer 30

keep in mind that this does NOT include the 10% down payment

Answer 31

Awesome! Thank you. May you help me with one more please?

Answer 32

sure

Answer 33

Shayla is financing a house for $126,750. She has to pay $450 plus 1.15% for a brokerage fee.
How much are the mortgage brokerage fees?
$2,351.25
$1,907.63
$1,457.63
$595.76
for this one I put $1,907.63***

Answer 34

you are correct

Answer 35

nice work

Answer 36

Thank you so much for your help:)!

Answer 37

you're welcome