Question

Mike's closing costs will add up to 4 percent and he'll make a down payment of 20 percent on a house that costs $210,000. Over the life of his loan, he will pay $197,040.76 in monthly payments. What is the total cost of his house?

Answer 1

210000 * .20 = 42000 down payment

210000 * .04 = 8400 closing costs

197040.76 + 42000 + 8400 = 247440.76 total cost

Answer 2

The total cost of the house is $ 247,440.76.

Explanation:

Given,

The original cost of the house = $ 210,000,

Down payment percentage = 20 %,

⇒ Down payment = 20 % of the original cots = 20 % of 210,000

`=0.20* 210000`

`=\$ 42,000`

Now, the rate of closing cost = 4 %,

⇒ The closing cost = 4 % of the original cost = 4 % of 210000

`=0.04* 210000`

`=\$ 8400`

Also, the total payment paid for the house = $ 197,040.76

Hence, the total cost of the house = Total payment paid + Down Payment + Closing cost

= $ 197,040.76 + $ 42,000 + $ 8,400

= $ 247,440.76