Sharon Fox decided to buy a home in Marblehead, Massachusetts, for \$282,000. Her bank requires a 20% down payment. Sue Willis, an

Sharon Fox decided to buy a home in Marblehead, Massachusetts, for \$282,000. Her bank requires a 20% down payment. Sue Willis, an attorney, has notified Sharon that besides the 20% down payment there will be the following additional costs:

Recording of the deed \$ 37.00
A credit and appraisal report 162.00
Preparation of appropriate documents 55.00

In addition, there will be a transfer tax of 2% of the purchase price and a loan origination fee of 2% of the mortgage amount. Assume a 30-year mortgage at a rate of 10.5%.

a. What is the initial amount of cash Sharon will need? (Do not round intermediate calculations. Round your answer to the nearest cent.)

b. What is her monthly payment? (Do not round intermediate calculations. Round your answer to the nearest cent.)

c. What is the total cost of interest over the life of the mortgage? (Do not round intermediate calculations. Round your answer to the nearest cent.)

1 thought on “Sharon Fox decided to buy a home in Marblehead, Massachusetts, for \$282,000. Her bank requires a 20% down payment. Sue Willis, an”

1. ngocdiep
The initial amount of cash that Sharon will need in this scenario will be \$67821.20.

How to calculate the payment?

The initial amount of cash will be:
= (\$282000 × 20%) + (\$282000 × 2%) + (\$276360 × 2%) + (\$162) + (\$37) + \$55
= \$56400 + \$5640 + \$5527.20 + \$162 + \$37 + \$55
= \$67821.20
Therefore, the the initial amount of cash Sharon will need is \$67821.20.