document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=993046>Question 993046</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A couple wants to buy a house that costs $320,000. The house can be financed<BR>\n" );
document.write( "with a fixed rate mortgage of 15 years at 4.8% compounded monthly. They<BR>\n" );
document.write( "decide to make a 25% down payment, and 2.5 points must be paid to the bank<BR>\n" );
document.write( "at closing.<BR>\n" );
document.write( "a. What is the down payment?<BR>\n" );
document.write( "b. What is the amount borrowed?<BR>\n" );
document.write( "c. What is the price of the 2.5 points at closing?<BR>\n" );
document.write( "d. What are the monthly payments?<BR>\n" );
document.write( "e. How much interest is paid? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #612481 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=612481\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> A couple wants to buy a house that costs $320,000. The house can be financed<BR>\n" );
document.write( "with a fixed rate mortgage of 15 years at 4.8% compounded monthly. They<BR>\n" );
document.write( "decide to make a 25% down payment, and 2.5 points must be paid to the bank<BR>\n" );
document.write( "at closing.<BR>\n" );
document.write( "a. What is the down payment?<BR>\n" );
document.write( "down payment is .25 * 320,000 = 80,000<BR>\n" );
document.write( "b. What is the amount borrowed?<BR>\n" );
document.write( "amount borrowed is 320,000 - 80,000 = 240,000<BR>\n" );
document.write( "c. What is the price of the 2.5 points at closing?<BR>\n" );
document.write( "price is .025 * 240,000 = 6,000<BR>\n" );
document.write( "each point is 1 percent of the price of the mortgage.<BR>\n" );
document.write( "d. What are the monthly payments?<BR>\n" );
document.write( "mortgage is for 15 years.<BR>\n" );
document.write( "number of monthly payments is 15*12 = 180<BR>\n" );
document.write( "interest rate is 4.8% compounded monthly.<BR>\n" );
document.write( "interest rate per month is 4.8% / 12 = .4%<BR>\n" );
document.write( "monthly payment will be 1,872.99<BR>\n" );
document.write( "e. How much interest is paid?<BR>\n" );
document.write( "total payments is equal to 1,872.99 * 12 * 15 = 337,138.2<BR>\n" );
document.write( "principal is 240,000<BR>\n" );
document.write( "total interest is 337,138.2 - 240,000 = 97,138.2<BR>\n" );
document.write( "here's an online calculator that helps you calculate the mortgage.<BR>\n" );
document.write( "http://www.arachnoid.com/lutusp/finance.html<BR>\n" );
document.write( "here's my inputs that got you the monthly payment.<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2015/092901.jpg\" alt=\"$$$\" </><BR>\n" );
document.write( "i entered what was shown and then clicked on pmt and the calculator gave me the result.<BR>\n" );
document.write( "the calculator also shows you the formulas you can use if you have to do it manually.\r<BR>\n" );
document.write( "\n" );
document.write( " </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );