Question

Sharon Fox decided to buy a home in Marblehead, Massachusetts, for $272,000. Her bank requires a 20% down payment. Sue Willis, an attorney, has notified Sharon that besides the 20% down payment there will be the following additional costs: (Use Table 15.1.). Recording of the deed $27.00 A credit and appraisal report 152.00 Preparation of appropriate documents 45.00 Other closing expenses include a transfer tax of 2.0% of the purchase price and a loan origination fee of 2.0% of the mortgage amount Assume a 30-year mortgage at a rate of 10.5%. a. What is the initial amount of cash Sharon will need? (Do not round intermediate calculations. Round your answer to the nearest cent.) Initial amount $ b. What is her monthly payment? (Do not round intermediate calculations. Round your answer to the nearest cent.) Monthly payment $ c. What is the total cost of interest over the life of the mortgage? (Use 360 days a year. Do not round intermediate calculations. Round your answer to the nearest cent.) Total cost of interest ?

TABLE 15.1Amortization table (mortgage principal and interest per $1,000) INTEREST Term 64% 9% 10% 10% 11% in years 10 12 5% 55% 6% 7% 71% 8% 85% 9% 9.89 10.6 10.86 36 .62 1.88 12.14 12.40.67 2.94 13.22 3.50 13.78 8.52 7.15 7.9 8.18 8.44 8.72 8.99 9.28 9.56 9.85015 10.45 10.75 1.06 1.37 6.52 7.29 7.56 7.84 8.12 8.40 8.69 8.99 9.299.9 9.90 10.22 0.54 0.86 5.80 6.60 6.88 7.17 746 7.76 8.06 8.37 8.68 9.00 9.33 9.66 9.99 10.33 5.44 6.20 6.51 5.01 4.50 5.37 5.68 6.00 6.33 6.66 7.00 7.34 7.69 8.41 3.99 5.055.38 5.7 9.25 9.51 9.76 0.02 0.29 0.56 0.83 I1 1.39 I67 11.96 2.25 2.54 17 20 6.82 7.13 7.44 7.75 8.07 8.39 8.72 9.05 9.39 9.73 0.08 25 30 35 5.85 6.156.45 6.76 7.07 7.39 7.72 8.068.40 8749.09 9.45 9.8 8.78 9.15 9.53 7.477.848.22 8.60 8.99 9.37 6.05 6.39675 7.1