Cram Course SELLER & PURCHASER COST NARRATIVE Bill Buyer makes an offer to purchase Sarah Seller's property for $190,000 with a 90% conventional loan. The contract calls for an August 14th closing and the Buyer has provided an earnest money deposit of $2,000.00 The following are the stipulations in the contract: NOTE: use a 360 day financial calendar to calculate all interest payments SARAH SELLER: . . . Sarah will pay 2 1/4 discount points on behalf of the buyer. Sarah will pay a 7% commission. Taxes of $2213 have been paid and are to be prorated at closing. Sarah's existing mortgage has an outstanding loan balance of $119,475.25 bearing an interest rate of 7.25%. Sarah has been advised that an insurance proration for the existing insurance policy will be refunded. The annual policy premium is $572, with the policy premium due date being March 17th. BUYER BILL: The PMI rate has been quoted by the lender at 0.63%. Bill's new annual hazard insurance premium will be $584. Bill will be required to establish the escrow account with 5 months of property tax, 3 months of hazard insurance, and 3 months for private mortgage insurance. The interest rate of Bill's new loan will be 7.75% per annum with a payment factor of $6.14 per thousand. Bill will pay the state of Georgia transfer tax and intangibles tax. The total remaining closing cost to be charged to the buyer is 2.5% of the loan amount. Based on the above information, complete the following questions: 1. The number of days of accrued interest for the is ; with accrued interest totaling. A. Purchaser -18 days - $433.09 B. Seller 14 days - $336.85 C. Seller 18 days - 433.09 D. Purchaser 14 days $336.86