Sharon Fox decided to buy a home in Marblehead, Massachusetts, for $275,000. Her bank requires...
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Sharon Fox decided to buy a home in Marblehead, Massachusetts, for $275,000. Her bank requires a 30% down payment. Sue Willis, an attorney, has notified Sharon that besides the 30% down payment there will be the following additional costs: (Use Table 15.1.).
| Recording of the deed | $30.00 |
| A credit and appraisal report | 155.00 |
| Preparation of appropriate documents | 48.00 |
Other closing expenses include a transfer tax of 1.8% of the purchase price and a loan origination fee of 2.5% of the mortgage amount. Assume a 30-year mortgage at a rate of 10%.
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 $
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