Download What is the difference between total costs with and without a down

Mortgage 07 Total Cost
Name _________________
Option 1: Completed Independently
Part I: Research and Determine Mortgage Amount
1.
Find a home you would like to purchase and provide a description of the home along with the sale price.
2.
State the mortgage amount needed for the home you chose if you do not have a down payment.
3.
Time to get creative! Come up with a down payment amount you could have saved and explain how the
money was saved.
4.
State the mortgage amount needed for the home you chose after taking your down payment into
consideration.
Part II: Calculate Total Costs
A bank offers the fixed rate loan shown below. Calculate the following for your mortgage with and without a down
payment. Show your work for parts 2 – 7.

Monthly payment amount for a 5.7% 30-year fixed rate mortgage

Total cost of principal and interest

One Discount point that equals 1% of the mortgage amount

Documentary Stamp Tax on Deed is $0.70 per $100 or portion thereof

Documentary Stamp Tax on Mortgage is $0.35 per $100 or portion thereof

Mortgage Broker Fee is 0.75% of the mortgage amount

Intangible tax amount is 0.2% of the mortgage amount
Part III: Analysis
Make a table as shown to compare costs.
Down Payment
Total Principal and Interest
Discount Points
Documentary Stamp Tax on Deed
Documentary Stamp Tax on Mortgage
Mortgage Broker Fee
Intangible Tax
Down Payment Amount
TOTAL
No Down payment
What is the difference between total costs with and without a down payment? What does this value represent?
1.
Do all of the costs depend on the amount of the mortgage? Explain using complete sentences.
2.
How does a down payment affect the total cost of a mortgage? Explain using complete sentences.