Question

A mortgage is in the amount of $400,000. The origination fee is 0.2%, the intangible tax is 0.4%, and there are 1.9 discount points. Which of the

following is the total cost of the origination fee, intangible tax, and discount points?
$9,200
$10,000
$7,600
$2,400


Someone please help me :(

Answer 1

Total cost of All fee = $10,000

Explanation:

Given:

Mortgage amount = $400,000

Origination fee = 0.2%

Intangible tax = 0.4%

Discount point = 1.9

Find:

Total cost of All fee

Computation:

Total cost of All fee = (Mortgage amount)(Origination fee) + (Mortgage amount )(Intangible tax) + (Mortgage amount )(Discount point)

Total cost of All fee = ($400,000)(0.2%) + ($400,000)(0.4%) + ($400,000)(1.9/100)

Total cost of All fee = $800 + $1,600 + $7,600

Total cost of All fee = $10,000