What I believe to be irrelevant information: making $42, 000/yr; minimum of 10% down on actual selling price; home insurance $1000/yr & property taxes $3100/yr paid separately from loan; payments will start one month from the time of purchase; no points.
What I believe to be relevant information: asking price $139, 000; 15% discount; 50% off of 6% real estate agent fees; real estate agent fees are 3% of selling price; title insurance is 1/2 of 1% of selling price; surveying fees $350; legal fees $500; document fees $250; miscellaneous fees $150; loan origination fee 1% of all money borrowed except origination fee. Borrowing remaining amount above down payment at a stated nominal loan rate of 6.5%. 30 year loan.
I have to determine the total amount that I will need to borrow (everything but the down payment; do include origination fee as well.) Determine the monthly payment. Determine the amount of taxable interest I will pay in the 1st, 5th and 15th years. How much interest will I pay total? What is the total dollar amount I will pay? Set up an amortization schedule listing the monthly payments, the interest paid, the principal paid, and the loan balance for the entire 360 month period.
I used bankrate.com, which I am allowed to do. I attached the amortization schedule to my problem.
So far I have: the asking price: 139000 - 15% discount: 20850 = the selling price: 118150
The real estate agent fee is 3% of selling price: 118150 = 3544.50. Title insurance is 1/2 of 1% of 118150 = 590.75. So the total amount to borrow would be: selling price: 118150 + real estate agent fee: 3544.5 + title insurance:590.75 + surveying fees: 350 + legal fees: 500 + document fees: 250 + Misc. fees: 150 = 123,035.25 + origination fee:(1% of all money borrowed except for the origination fee) 1230.35 = total amount to borrow = 124, 265.60. According to the attached amortization schedule, my monthly payment would be $785.44. Taxable interest for 1st year: $8036.37; 5th year: $39, 187.23; 15th year: $107,280. 21. By 2036 I will pay $158, 493.92 total interest. The total dollar amount I will end up paying is: total interest $158493.92 + Principal Paid $781.21 = $159275.13.
The attached amortization schedule gives me: the montly payments, the interest paid, the principal paid, and the loan balance for the entire 360 month period.
I want to know if these numbers are correct.
I have reviewed your calculations and have three comments:
1. The amount you calculated at $123,035.24 is $500 light. I think it was simply an adding error because I agree with ...
In the solution, the work done by a student was carefully reviewed. There are some changes to correct the chain of data.