document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=277018>Question 277018</A>: <I><SPAN STYLE=\"word-break: break-all;\"> bob owen is closing a real estate transaction on a farm in Yocona, Mississippi, for 385,900.  his mortgage holder requires a 25% down payment and he also must pay 60.00 to record the deed, 100 in attorney's fees for document preparation, and 350 for an appraisal report.  Bob will also have to pay a 1.5% loan origination fee.  Bob chooses a 35 year mortgage at 7%.  How much cash will bob need to close on the property? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #201778 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=201778\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Cost of farm is $385,900.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "25% down payment = .25 * $385,900 = $96,475<BR>\n" );
document.write( "cost to record deed = $60<BR>\n" );
document.write( "attorney's fees = 100<BR>\n" );
document.write( "appraisal report = 350\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "1.5% loan origination fee = ????? (see below).\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "cost of farm is $385,900<BR>\n" );
document.write( "Down Payment is $96,475<BR>\n" );
document.write( "Mortgage will be $385,900 - $96,475 = $289,425<BR>\n" );
document.write( "1.5% of $289,425 will be $4341.375\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "Amount of cash Bob will need to close on the property is:\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "$96,475 + $60 + $100 + $350 + 4,341.38 = $101,326.38\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "The payments on the mortgage will be approximately $1,819.01 per month.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "That's based on end of month payments at 7%/12 = .58333333% per month for 35*12 = 420 months.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "The mortgage payments are NOT part of the up front costs required for closing.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( " </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );