The Z family purchased their first home for $160,500 and got an 85% loan. They paid two discount points. How much cash did they have to bring to settlement?

To determine how much cash the Z family had to bring to settlement, we first need to break down the components of their purchase.

The total cost of the home is $160,500 and they secured an 85% loan. To calculate the loan amount, we take 85% of the home price:

[ Loan Amount = Home Price \times Loan Percentage ] [ Loan Amount = 160,500 \times 0.85 = 136,425 ]

Next, we need to figure out how much of the home price the Z family needs to pay upfront, which includes the down payment and any additional costs such as discount points. The down payment can be calculated by subtracting the loan amount from the home price:

[ Down Payment = Home Price - Loan Amount ] [ Down Payment = 160,500 - 136,425 = 24,075 ]

Now, the Z family also paid two discount points. Discount points are calculated based on the loan amount and are typically expressed as a percentage of that amount. The cost of two points is:

[ Cost of Discount Points = Loan Amount \times Points Percentage ] [ Cost of Discount Points = 136,