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Narrative 14-2 For Problems in This Section, Use Table 14-1 from Your

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Narrative 14-2
For problems in this section, use Table 14-1 from your text to find monthly mortgage payments.
-Refer to Narrative in your text 14-2. Isabella is purchasing a home for $150,000. The down payment is 15% and the balance will be financed with a 25-year mortgage at 8% and 2 discount points. Isabella made a deposit of $10,000 (applied to the down payment) when the sales contract was signed. Isabella also has these expenses: credit report, $60; appraisal fee, $130; title insurance premium, 1% of amount financed; title search, $200; and attorney's fees, $400. What is the amount due at the closing?

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Definitions:

Interest

A charge for borrowed money, generally a percentage of the amount borrowed or the enthusiasm for or attention dedicated to a particular subject or activity.

Energy Level

The degree of vitality or physical and mental stamina an individual has available for activities.

Concentration

The action or power of focusing one's attention or mental effort on a specific object or activity.

Outlining

Creating a general structure for a piece of writing, presentation, or project, highlighting its main points.

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