Question

Jakob is purchasing a condominium for $347,500 and has financed 90% of it. He has purchased 2 discount points, has to pay a 1.75% origination fee and a brokerage fee of $100 plus 0.25% of the loan. What are his total fees that he must pay?

Answer 1

Jakob's total fees for purchasing the condominium, including discount points, origination fee, and brokerage fee, amount to $12,610.01.

Step-by-step explanation:

Jakob is purchasing a condominium for $347,500 and has financed 90% of it. The amount financed (the loan amount) is 90% of $347,500, which results in $312,750. To calculate the total fees Jakob must pay, let's break them down:

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• Discount points: 2 discount points each cost 1% of the loan amount. So, 2% of $312,750 is $6,255.
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• Origination fee: 1.75% of the loan amount. So, 1.75% of $312,750 is $5,473.13.
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• Brokerage fee: $100 flat plus 0.25% of the loan amount. So, $100 + (0.25% of $312,750) is $100 + $781.88, which equals $881.88.

Adding all the fees up, the total fees Jakob must pay are:

$6,255 (discount points) + $5,473.13 (origination fee) + $881.88 (brokerage fee) = $12,610.01