The price of a home is $260,000. The bank requires a 20% down payment and one point at the time of closing. The cost of the home is financed with a 15-year fixed-rate mortgage at 7%.
a. Find the required down payment.
b. Find the amount of the mortgage.
c. How much must be paid for the one point at closing?
d. Find the total cost of interest over 15 years, to the nearest dollar.

Answer: a. down payment: $52,000
b. amount of mortgage: $208,000
c. points paid at closing: $2080
d. total cost of interest over 15 years: $128,521

Question

The price of a home is $260,000. The bank requires a 20% down payment and one point at the time of closing. The cost of the home is financed with a 15-year fixed-rate mortgage at 7%.
a. Find the required down payment.
b. Find the amount of the mortgage.
c. How much must be paid for the one point at closing? 
d. Find the total cost of interest over 15 years, to the nearest dollar. 
 
Answer: a. down payment: $52,000
 b. amount of mortgage: $208,000 
c. points paid at closing: $2080 
d. total cost of interest over 15 years: $128,521

anonymous · Answer

@rebeccaxhawaii

anonymous · Answer

i have the answers but for letter d i don't know how to do it

ltrout · Answer

How did you get $208,000 for B?

anonymous · Answer

260000-52000