question archive A house is selling for $190,000
A house is selling for $190,000
Subject:FinancePrice:3.87 Bought7
A house is selling for $190,000. A deposit of $10,000 was made when the sales contract was signed. The down payment is 25% and the balance will be financed with a 25-year mortgage at 9% and 3 discount points. If the sellers are responsible for the broker's commission (6% of the purchase price); $1,250 in other closing costs; and the existing mortgage, with a balance of $70,000; what proceeds will they receive on the sale of the property?
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Answer:
Sale price of the house =$190,000.
Deposit to be made when the sales contract is signed =$10,000.
Down payment =25% of $190,000.
Brokers commission =6% of the purchase price i.e., $190,000.
Closing costs =$1,250.
Existing mortage =$70,000.
Proceeds received on sale of the properrty = sale price -broker's commission - closing costs - mortagage balance
=$190,000 -$11,400 -1250-70,000
=$107,350.
Note: Deposit made at the time of sales contract signing is also a proceeds arising out of the sale orice $190,000.
