The price of a home is $215,000. The Bank requires 20% down payment and three points at the time of closing. The cost of the home is financed with a 30-year fixed-rate mortgage at 7%. Find down paymen

Answer 1

Loan =(0.80+0.03)215000 = $178,450.

D.P. = 215000 - 178450 = $36,550. = Down
Payment.

Answer 2

Correction:

D.P. = 0.2 * 215,000 = $43,000. = Down
Payment.

Points are a fee that is added to the
D.P. at closing.

Cost of points = .03 * 43000 = $1290.

Tot. D.P. = 43000 + 1290 = $44,290.