To determine how much additional money you must save per month to cover the closing costs of 5% along with your down payment, you need to know the total price of the home and the percentage that represents closing costs.
Let's say the home price is \( P \).
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Calculate the down payment: If your down payment is \( D% \) of the home price, then: \[ \text{Down Payment} = D \times P \]
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Calculate closing costs: If the closing costs are 5% of the home price, then: \[ \text{Closing Costs} = 0.05 \times P \]
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Total upfront cost: The total upfront cost, which includes the down payment and closing costs, is: \[ \text{Total Upfront Cost} = \text{Down Payment} + \text{Closing Costs} = D \times P + 0.05 \times P = (D + 0.05) \times P \]
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Determine the amount to be saved each month: If you're planning to save an amount \( S \) per month, you would need to know how many months \( N \) you plan to save: \[ S \times N = (D + 0.05) \times P \]
From this equation, you can solve for the monthly savings required: \[ S = \frac{(D + 0.05) \times P}{N} \]
To give a specific answer in the form \( $ \text{amount}/month \), you need specific values for \( P \), \( D \), and \( N \).
Without these specifics, I can't provide a numerical answer. However, you would simply substitute the values into the above formula to find your answer. If you provide those values, I can help you calculate the exact amount you need to save per month.
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