Brooke bought a condominium for $342,700. She made a 12% down payment and financed the remaining amount using a 30-year fixed-rate mortgage at 6.7%. The monthly payment is $1,946. Brooke will pay for one discount point, a 0.75% origination fee, the brokerage fee, state documentary taxes on the deed and the mortgage, and the intangible tax.

Discount points equal 1% of the mortgage amount.
Documentary stamp tax on deed is $0.70 per $100 or portion thereof.
Documentary stamp tax on mortgage is $0.35 per $100 or portion thereof.
Mortgage broker fee is $225 plus 6% of the mortgage amount.
Intangible tax is 0.2% of the mortgage amount.
What is the total amount of the principal, interest, down payment, and fees described for Brooke’s condominium?

Question

Brooke bought a condominium for $342,700. She made a 12% down payment and financed the remaining amount using a 30-year fixed-rate mortgage at 6.7%. The monthly payment is $1,946. Brooke will pay for one discount point, a 0.75% origination fee, the brokerage fee, state documentary taxes on the deed and the mortgage, and the intangible tax.

Discount points equal 1% of the mortgage amount.
Documentary stamp tax on deed is $0.70 per $100 or portion thereof.
Documentary stamp tax on mortgage is $0.35 per $100 or portion thereof.
Mortgage broker fee is $225 plus 6% of the mortgage amount.
Intangible tax is 0.2% of the mortgage amount.
What is the total amount of the principal, interest, down payment, and fees described for Brooke’s condominium?

jigglypuff314 · Answer

Hello @bsf219 and Welcome to OpenStudy! :)

Thank you for asking a Qualified Help question! Please give me a few minutes to read through you question :)

jigglypuff314 · Answer

First let us find out how much money is the mortgage :)

That would be the original amount Minus 12% of that number
so What is 12% of 342700 = ?

anonymous · Answer

41124!

jigglypuff314 · Answer

good! 

then 342700 - 41124 = [mortgage amount] = ?

jigglypuff314 · Answer

oh yeah, also, that number would find one of the numbers you are looking for :)

the 41124 would be the "Down Payment" amount :D

anonymous · Answer

301,576 is the mortgage amount? And the 41124 is the down payment?

jigglypuff314 · Answer

yes and yes :)
the mortgage amount can also be called the "Principal" amount in this case
because it will be the number that all the percents and interest rates are based on :)

anonymous · Answer

so adding them together is 342,700. So how do I figure out the interest and fees to add to that?

jigglypuff314 · Answer

Interest = (Principal) * (the interest percent) * (number of years)

jigglypuff314 · Answer

so for this problem,
Interest = 301576 * 0.067 * 30 = ?

anonymous · Answer

606,167.76?

jigglypuff314 · Answer

yes, that's what I got :)

anonymous · Answer

Okay so what about the fees? And do I add 606167.76 to the 342,700 to work towards my answer?

jigglypuff314 · Answer

Nope, I don't believe you need to add your interest amount to anything for you answer :)

for the fees, you would find them each separately
then add them all together :)

Discount Points = 1% of mortgage = 0.01 * 301576 = ?
Origination Fee = 0.75% = 0.0075 * 301576 = ?

anonymous · Answer

3015.76 for discount points and
2261.82 for origination fee. 
But what about all of the taxes and intangible taxes?

jigglypuff314 · Answer

those are right so far :)

and I was getting to the others xD
"Documentary stamp tax on deed is $0.70 per $100 or portion thereof.
Documentary stamp tax on mortgage is $0.35 per $100 or portion thereof.
Mortgage broker fee is $225 plus 6% of the mortgage amount.
Intangible tax is 0.2% of the mortgage amount."

although I am not sure how much the deed costs?

jigglypuff314 · Answer

Documentary Stamp Tax on Mortgage = (0.35/100) * 301576 = ?
Mortgage Broker Fee = 225 + (0.06 * 301576) = ?
Intangible Tax = 0.002 * 301576 = ?

anonymous · Answer

1055.516 for doc stamp tax
18,319.56 for broker fee
603.152 for intangible tax.
Add those all together and you get 19,978.228

anonymous · Answer

$370,354.71
 $769,338.71
 $772,752.00
 $1,070,914.71

These are my answer choices

jigglypuff314 · Answer

don't forget the two other fees from before :)

anonymous · Answer

adding in discount points/origination fees you get 367,955.808 which isnt one of my answer choices

jigglypuff314 · Answer

I'll try to work it out ^_^

anonymous · Answer

Thank you!!

jigglypuff314 · Answer

What numbers did you add to get 367,955.808 ?
because I had missed out on the one part of adding the deed's fee amount since I did not know how much the deed was?

anonymous · Answer

I added the 342,700 (the downpayment & mortgage) + 19,978 (other taxes shown above) + 5,277.58 (points/orig fee)

anonymous · Answer

Its close to Option A which is 370,000 but i'm wondering if I missed something.

jigglypuff314 · Answer

Yes, I am wondering if I read something wrong...

another possibility would be
1946 monthly fee times 30 years times 12 months in a year = 700560
then Option A plus that number would get you Option D

anonymous · Answer

hmmm if you had to answer the question which one would you choose?

jigglypuff314 · Answer

Option B
because the 700560 is just the Interest plus the Mortgage that they want us to use which means adding the Down Payment and other Fees would get you a number very close to Option B

anonymous · Answer

Thank you so much!!

jigglypuff314 · Answer

Glad I could help ^_^