Question

Terrance Jacobs is looking for a larger home. Jacobs offers $205,000 for a fourbedroom house and the seller accepts. Jacobs wishes to make a 15 percent down payment and finance the remaining amount through the mortgage company. What is the amount of his mortgage loan?

Answer 1

Terrance will need a mortgage loan of US$ 174,250

Explanation:

1. Let's review the information given to solve the question.

Value of the house Terrance Jacobs is going to buy = US$ 205,000

Down payment Terrance can afford = 15% of the value of the house

Down payment Terrance can afford = 15% of US$ 205,000

Down payment Terrance can afford = 15% * 205,000

Down payment Terrance can afford = US$ 30,750

2. For finding the amount of the mortgage loan Terrance need for buying the house, we should do this:

Amount of mortgage loan = Value of the house - Down payment

Amount of mortgage loan = 205,000 - 30,750

Amount of mortgage loan = US$ 174,250

Terrance will need a mortgage loan of US$ 174,250