00:01
Hello everyone, in this question the price of a home is given 2 ,50 ,000 and down payment is 15%.
00:07
At the time of closing we have to give two points and fixed rate mortgage is 20 here at 6 .5%.
00:14
So the first part is we have to find the down payment.
00:21
So down payment is 15 % of 2 ,50 ,000 that is 15 divided by 100 into 2 ,50 ,000 which gives you the value 37 ,500.
00:38
So which is the required down payment.
00:40
Next we have to find the mortgage amount.
00:45
Mortgage amount is nothing but the original price minus down payment.
00:53
So the original price is 2 ,50 ,000 minus down payment is 37 ,500.
01:01
So the mortgage amount is 2 ,12 ,500.
01:08
Third part is amount to be paid for the two points at closing.
01:20
So which is nothing but the two points at closing means 2 % of mortgage amount that is 2 divided by 100.
01:29
Mortgage amount is we have got 2 ,12 ,500.
01:34
So which gives you 4 ,250...