Standard #: MA.912.F.3.7 (Archived Standard)


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Calculate the following fees associated with a mortgage:
  • discount points 
  • origination fee 
  • maximum brokerage fee on a net or gross loan 
  • documentary stamps 
  • prorated expenses (interest, county and/or city property taxes, and mortgage on an assumed mortgage)


Remarks


Example:
1) Calculate the total amount of fees on a $230,000 mortgage if the lender: charges 2 points and a 0.5% origination fee.
2) Calculate the maximum brokerage fee on a net loan of $184,000,
3) A seller has agreed to pay the Documentary Stamps on a property worth $150,000 (selling price). The purchaser is responsible for the Documentary Stamps on the $75,000 mortgage being assumed and the new $25,000 second mortgage. Calculate all applicable amounts.
4) A $185,340 loan carries at a 5.625% annual interest rate. Using the 365 day method, how much interest would a buyer owe for the 22 days remaining for a May closing.

General Information

Subject Area: X-Mathematics (former standards - 2008)
Grade: 912
Body of Knowledge: Financial Literacy
Standard: Loans and Financing - Become familiar with and describe the advantages and disadvantages of short-term purchases, long-term purchases, and mortgages.
Date Adopted or Revised: 09/07
Content Complexity Rating: Level 1: Recall - More Information
Date of Last Rating: 06/07
Status: State Board Approved - Archived

Related Courses

Course Number1111 Course Title222
1200500: Advanced Algebra with Financial Applications (Specifically in versions: 2014 - 2015 (course terminated))


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