A house is selling for $150,000. A deposit of $20,000 was made when the sales contract was signed. The down payment is 30% and the balance will be financed with a 25-year mortgage at 4.25% and 4 discount points. If the sellers are responsible for the broker's commission (6% of the purchase price); $1,300 in other closing costs; and the existing mortgage, with a balance of $40,000; what proceeds will they receive on the sale of the property?

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First, calculate the total amount the sellers will receive from the sale:- The purchase price is $150,000.- The broker's commission is 6% of $150,000, which is $9,000.- Other closing costs are $1,300.- The existing mortgage balance to be paid off is $40,000.The total amount the sellers have to pay is the sum of the broker's commission, other closing costs, and the existing mortgage, which is $9,000 + $1,300 + $40,000 = $50,300.The proceeds from the sale are the purchase price minus the total amount the sellers have to pay, which is $150,000 - $50,300 = $99,700.

A House Is Selling for $150,000