The price of a home is $102,000. The bank requires a 20% down payment and three points at the time of closing. The cost of the home is financed with a 30-year fixed-rate mortgage at 9.5%
Find the required down payment.
20% of 102,000 = 20,400
Loan amount = 102,000 - 20,400 = 81,600
3% of 81,600 = 2,448
Total downpayment = 20,400 + 2,448 = _____
To find the required down payment, we need to calculate 20% (or 0.2) of the price of the home.
Step 1: Multiply the price of the home by 0.2 (20%)
Down payment = $102,000 * 0.2 = $20,400
Therefore, the required down payment for the home is $20,400.