Rohan and Lindsay’s offer of $350,000 on a dream home has been accepted! They are excited...

Rohan and Lindsay’s offer of $350,000 on a dream home has been accepted! They are excited to move from being renters to homeowners but know that things will be tight since it took all their savings for a 10% down payment. Costs are however adding up, which is making them nervous. The Canada Mortgage Housing Corporation (CMHC) mortgage loan insurance premium is 3.10% of the mortgage amount which they have decided to pay at the time of closing instead of adding it to their monthly mortgage. Other fees include a $275 loan application fee, a $350 appraisal fee, a $750 home inspection fee, $665 in notary fees and $350 for title search and insurance. How much will Rohan and Lindsay need to cover at closing including the down-payment?

$47,155

$35,000

$37,390

$46,950

$47,000

Solutions

Expert Solution

Down payment = cost of house * 10% = $350,000 * 10% = $35,000

Insurance premium = (cost of house - down payment) * 3.1% = $9,765

Total costs to cover at closing = Down payment + Insurance premium + loan application fee + appraisal fee + home inspection fee + notary fees + title search and insurance

Total costs to cover at closing = $35,000 + $9,765 + $275 + $350 + $750 + $665 + $350

Total costs to cover at closing = $47,155

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

You just graduated college with your Bachelors Degree and accepted a job offer at your dream...

You just graduated college with your Bachelors Degree and accepted a job offer at your dream company. You decided to celebrate by purchasing the vehicle of your dreams. Pictured is a Dodge Challenger HellCat see picture above for $58,995). You have a 720 credit score, therefore you were able to get a 5% interest rate on a 7 year loan. You will be making monthly payments. Using Excel, prepare a professional amortization schedule for the entire 7 years. It must...

Jamie has been accepted to a university in a city far from her home. She will...

Jamie has been accepted to a university in a city far from her home. She will need to rent an apartment and has two choices. The first choice , cost $1,000 per month, and is within walking distance of the university. The second apartment costs $925 per month, but Jamie will have to buy a bus pass in order to get to the university. The pass costs $100 per month. Jamie has been hired to work part time at a...

Having been stuck at home for the last few months, your friend Ben is excited by...

Having been stuck at home for the last few months, your friend Ben is excited by a new business idea. He asks for your feedback on the sales section of his new business plan. Ben’s Bears will create custom teddy-bears, that will include a small chip holding a selection of recorded voices. When grandparents or other loved ones order the bear, they can upload some short recordings of their voices which the children will hear when they press a button...

Jim has a better chance of having his offer accepted, since the seller does not have...

Jim has a better chance of having his offer accepted, since the seller does not have any outside offers. A. Jim has a better chance of having his offer accepted, since the seller does not have any outside offers. B. Jim has lower chances of having his offer accepted, since the seller has more outside offers. C. The disagreement value for the seller has increased D. Only A and C

Question text It has been theorized that senior citizens dream in black and white at a...

Question text It has been theorized that senior citizens dream in black and white at a higher rate than the rest of the population because they were heavily exposed to black and white media in movies, television, and print. A study was conducted to determine the proportion of people who dream in black and white instead of color. Among 306 people over the age of 55, 68 dream in black and white, and among 298 people under the age of...

Suppose that for years the mean of population 1 has been accepted as the same as...

Suppose that for years the mean of population 1 has been accepted as the same as the mean of population 2, but that now population 1 is believed to have a greater mean than population 2. Letting α = 0.05 and assuming the populations have equal variances and x is approximately normally distributed, use the following data to test this belief. Sample 1: 43.6, 45.2, 43.4, 49.1, 45.2, 45.6, 40.8, 46.5, 48.3, 45.6 Sample 2: 40.1, 36.0, 42.2, 42.3,...

Mr. Zaheer has been longing to make his dream of starting a company a reality. For...

Mr. Zaheer has been longing to make his dream of starting a company a reality. For the purpose of floating a company it’s very much necessary to have an Articles of Association. Articles of Association is usually termed as the backbone of an organization. Think for instance you are Mr. Zaheer, in this situation how would you frame the Articles of Association for your company

E3 A) Mr. Zaheer has been longing to make his dream of starting a company a...

E3 A) Mr. Zaheer has been longing to make his dream of starting a company a reality. For the purpose of floating a company it’s very much necessary to have an Articles of Association. Articles of Association is usually termed as the backbone of an organization. Think for instance you are Mr. Zaheer, in this situation how would you frame the Articles of Association for your company. B) Mr. Ibrahim wants to start an oil refinery business in the form...

Miguel recently purchased his first home. He is very excited about making improvements to the home....

Miguel recently purchased his first home. He is very excited about making improvements to the home. He decides it would be cheaper if he had his own water source so he digs a well in his backyard. Next he decides to construct a large building right next to the edge of his property. The following spring, Miguel gets a letter from his neighbor Stephen claiming Miguel has stolen Stephen's water source by digging a well. Miguel decides not to say...

Bill has been accepted into a university and is looking into his housing options. He is...

Bill has been accepted into a university and is looking into his housing options. He is considering purchasing a mobile home to live in for the 4 years he will be going to school. The initial purchase price for the mobile home is $35,000. To purchase the home, Bill will make a 15% down payment and borrow the rest of the principal with a 7 year, fully amortized loan at 10% interest. Luckily, Bill knows two friends from high school...

Subjects