Question

You want to buy a $230,000 home. You plan to pay 20% as a down payment, and take out a 30 year fixed loan for the rest. Round all answers to the nearest cent as needed.

Answer 1

Amount of down payment = $46000

Mortgage needs = $184000

Solution:

From the given,

Cost of the house =
`\$230000`

Percentage of down payment =
`20\%`

Number of years of fixed loan = 30

`\text { Total down payment }=\text { cost of the house } * \text { Percentage of down payment }`

`\Rightarrow (230000 \$* 20)/(100) \rightarrow 46000 \$`

`\text {Mortgage needs}=\text { Total cost - Total down payment }`

`\Rightarrow 230000 \$-46000 \$=184000 \$`

It can be concluded that the total down payment for the house and mortgage needs would be
`\$46000 \text{ and } \$184000`