Contemporary Mathematics for Business and Consumers 7th Edition by Robert Brechner ,George Bergeman

Exercise 44

As one of the loan officers for Grove Gate Bank, calculate the monthly principal and interest, PI, using Table 14-1 and the monthly PITI for the following mortgages.
You are a real estate broker for Aurora Realty. One of your clients, Erica Heston, has agreed to purchase one of the homes your office has listed for sale for a negotiated price of $235,000. The down payment is 20%, and the balance will be financed with a 15-year fixed-rate mortgage at 8.75% and 31 2 discount points. The annual property tax is $5,475, and the hazard insurance premium is $2,110. When Erica signed the original contract, she put down a deposit of $5,000, which will be credited to her down payment. In addition, at the time of closing, Dawn must pay the following expenses:

As Erica's real estate broker, she has asked you the following questions:
a. What is the total monthly PITI of the mortgage loan?
b. What is the total amount of interest that will be paid on the loan?
c. How much is due from Erica at the time of the closing?
d. If your real estate office is entitled to a commission from the seller of 6 1 2 % of the price of the home, how much commission is made on the sale?