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Unformatted text preview: percent of the sales price, and a 20 percent down payment. House=180,000 Down payment= 36,000 Points=3,600 Loan origination fee=1,800 Loan application fee=300 Appraisal fee =200 Title search fee=500 Attorneys fee=400 Recording fee=20 Credit report=50 Termite and radon inspection fee=150 Notary fee=50 TOTAL INITIAL COST=$43,070.00 if you do 5% closing cost is $45,000 Question 7:Assuming the house in question 6 is appraised, for $180,000 and the information in the case concerning the taxes and insurance holds true, can Seyed afford the home if he finances it for 15 years? 20 years? 30 years? Why or why not? No, because the most money that he is authorize to take out is $162,850.91 Question 8: Will Seyed need private mortgage insurance? Will he need a gift letter? Yes, because there might be a likely hood that he will default on his payments. A gift letter will be needed if someone is willing to give him money to purchase the home....
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- Fall '11
- Personal Finance