I am really struggling with how to calculate administrative costs (these can be anything at the closing of a mortgage) when given the following information:
The purchase price of a new home is $350,000, but with a 20% downpayment you only finance $280,000. The loan is being offered at 6.125% plus 3 points (points only apply to $280,000 loan) and "administrative costs" that have not been quantified. The APR is 6.517%.
Can someone guide me through how to solve this using excel or long hand? Thanks.
The purchase price of a new home is $350,000, but with a 20% downpayment you only finance $280,000. The loan is being offered at 6.125% plus 3 points (points only apply to $280,000 loan) and "administrative costs" that have not been quantified. The APR is 6.517%.
Can someone guide me through how to solve this using excel or long hand? Thanks.
