Question 277018
Cost of farm is $385,900.


25% down payment = .25 * $385,900 = $96,475
cost to record deed = $60
attorney's fees = 100
appraisal report = 350


1.5% loan origination fee = ????? (see below).


cost of farm is $385,900
Down Payment is $96,475
Mortgage will be $385,900 - $96,475 = $289,425
1.5% of $289,425 will be $4341.375


Amount of cash Bob will need to close on the property is:


$96,475 + $60 + $100 + $350 + 4,341.38 = $101,326.38


The payments on the mortgage will be approximately $1,819.01 per month.


That's based on end of month payments at 7%/12 = .58333333% per month for 35*12 = 420 months.


The mortgage payments are NOT part of the up front costs required for closing.