How much cash must a buyer produce to complete a transaction for a property priced at $96,000 with a 10% down payment and a loan origination fee of 1.5%?

To find out how much cash a buyer needs to produce, first, determine the down payment based on the property price and then calculate any additional costs such as the loan origination fee.

1. Calculate the down payment:

The price of the property is $96,000, and the down payment is 10% of that.

[

Down\ payment = 96,000 \times 0.10 = 9,600

]

2. Calculate the loan origination fee:

The loan origination fee is 1.5% of the loan amount, which is the purchase price minus the down payment.

The loan amount would therefore be:

[

Loan\ amount = 96,000 - 9,600 = 86,400

]

Now calculate the loan origination fee:

[

Loan\ origination\ fee = 86,400 \times 0.015 = 1,296

]

3. Total cash needed to close:

The total cash needed to close the transaction is the sum of the down payment and the loan origination fee: