Challenge Problem:
Bob 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 attormey's fees for document preparation, and $350 for an appraisal report. Bob will also have to pay a 15% loan origination fee. Bob chooses a 35 year mortgage at 7%. (a) How much cash will Bob Need to close on the property? (b) How much will Bob's mortgage be? (c) What is Bob's monthly payment on the property?
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