Question

Financial Algebra help!

Create your own scenario of purchasing a home and include the mortgage amount. Solve for each calculation below and show your work.


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 1

@ganeshie8 Think you could help me with this one?

Answer 2

setup something lol

Answer 3

Okay lol I just bought my first home and the monthly mortgage on the house is $560

Answer 4

c'mon be some realistic lol
who on earth gives u house for $540 ?

Answer 5

idk xD how about the monthly mortgage is $1,500? is that more realistic?

Answer 6

Ok I'll buy the house for you :

Adrian bought a condominium for $300,500. She made an 10% down payment and financed the remaining amount using a 25-year fixed-rate mortgage at 6.2%.

Answer 7

If you dont want to make any down payment, just change the problem accordingly :)

Answer 8

making downpayment is just extra work, so lets change the problem :


Adrian bought a condominium for $300,500. She is using a 25-year fixed-rate mortgage at 6.2%.

Answer 9

Okay, so how would I incorporate that with the stamp tax in step one?

Answer 10

I'm just having a hard time understanding the entire question :l

Answer 11

you need to pay "documentary stamp tax" to government when u buy a house

Answer 12

the rate is : $0.35 for every $100 of house cost

Answer 13

So, stamp tax on ur house = \(\large \frac{300500}{100} \times 0.35\)

Answer 14

simplify

Answer 15

$1,051.75?

Answer 16

thats correct !

Answer 17

you need to pay $1051.75 as documentary stamp tax to the government

Answer 18

That make sense!

Answer 19

So, now what do we do for Part 2?
(Determine how many mortgage points will be purchased and calculate the cost.)

Answer 20

Updated the problem for remaining parts :

Adrian bought a condominium for $300,500. She made an 10% down payment and financed the remaining amount using a 25-year fixed-rate mortgage at 6.2%.
Adrian will pay for one discount point, and the brokerage fee of 7% of mortgage amount

Answer 21

so, you're going to pay for "one" discount point/.

Answer 22

each discount point costs u 1% of mortgage amount

Answer 23

so, cost for purchasing "one" discount point = \(\large 300500\times 0.01\)

Answer 24

simplify

Answer 25

$3,005

Answer 26

yup !
finally, broker fee is 7%... .so just calculate 7% of mortgage amount

Answer 27

which would be $300,500*0.07 right?

Answer 28

I ended up with $21,035 (:

Answer 29

good job !!

Answer 30

Thank you!

Answer 31

np :)

Answer 32

I really appreciate your help!