CLOSING WORKSHEET EXERCISE Use the following data and attached worksheet to answer the following questions: Closing Date (day belongs to the Buyer): September 1 (day 244 of the year) Selling Price: $262,500 Earnest Money: $3,600 Buyer's loan Amount: 90% LTV Points (Buyer pays): 2 points (a point is 1% of the loan amount) The Lender is requiring Buyer to put into Escrow one-half of next year's expected property insurance and taxes. Seller has $112,000 remaining on his mortgage as of the day of Closing. This loan will be paid off at closing. Existing property insurance: $700 (paid by Seller for the entire year). Expected property insurance for the next year: $700. Current year Property Tax: $3,300 (will be billed to Buyer next year). Broker's Commission (Seller pays): 6% Closing Costs (Buyer pays) 3% Lender's Title Insurance (Buyer pays): $300 Escrow Fee (Buyer and Seller will share equally): $500 Recording Fee (Buyer pays): $26.25 Transfer Tax (Seller pays): $481 Questions: 1. How much will the Buyer pay for points? 2. What is the amount the Buyer is borrowing? $ 3. How much is the Buyer's tax and insurance escrow for the following year, per the Lender's requirement?