Question

the andrews family has $40,000 for a down payment on a house and closing cost. they need a loan to cover the remaining expenses on the house they will purchase for $150,000. the closing costs are five percent of the home value. how much will the mortage or home loan be?

Answer 1

$117.500

Step-by-step explanation:

$40.000 cover

- $32.500 downton payment

- $7.500 - closing costs (5%*$150.000)

Closing costs is not a part of house price.

Remain costs = $150.000 - $32.500 = $117.500