Answered

justin Lowery is buying a condominium that sells for $ 150,000. The bank is requiring a minimum down payment of 18​%. To obtain a​ 20-year mortgage at 9.5​% ​interest, Justin must pay 2 ​point(s) at the time of closing. What is the cost of the 2 ​point(s) on the​ mortgage?

Answer :

Answer:

$123,000

Explanation:

Data provided in the question:

Selling cost of the condominium = $150,000

Minimum down-payment required = 18%

Interest rate on mortgage = 9.5%

Now,

Cost of mortgage

= Selling cost of the condominium - Minimum down-payment required

or

= $150,000 - ( 18% of $150,000 )

or

= $150,000 - $27,000

or

= $123,000

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