Question

Ann is buying a house that costs $250,000. She is making a down payment of 15 percent, and her closing costs will amount to 3 percent. Over the life of her loan, she will pay $282,089.89 in monthly payments. What is the total cost of her house?

Answer 1

can you explain what closing costs are?

Answer 2

#1
Ok so originally she pays 15% down payments so that is 15% of the total cost of the house
.15*250,000=37500

#2
There are closing cost which is 3% of the entire purchase
.03*250,000

#3
Lastly she takes out a mortgage for the remaining amt of of the house
so the house cost 250,000 and Ann gave a down payment of 37500
So she still owes 250,000-37500= 212500
But since she takes a couple of years to pay up the loan she pays interest too and ends up paying $282,089.89

So the total cost of her house is the Down payment + closing fee + total amt of payments