Dropdown	Option 1	Option 2
1	Down payment	Mortgage Points
2	Mortgage Points	Loan Origination Fee
3	Appraisal and Survey Fees	Credit Report Fee
4	Loan Origination Fee	Home, Termite, and radon inspections
5	Appraisal and Survey Fees	Title Insurance-Bank Policy
6	Lot Survey Fee	Attorney Fees
7	Home, Termite, and radon inspections	Title Insurance-Bank Policy
8	Title search and Deed recording Fee	Messenger and Document Fees
9	Title Insurance-Homeowner Policy	Messenger and Document Fees
10	Attorney Fees	Title Insurance-Bank Policy
11	Loan Payments (P&I)	Title Insurance-Homeowner Policy
12	Warranty Insurance Policy	Loan Payments (P&I)
13	Notary Fee	Mortgage Insurance Policy
14	Property Taxes	Warranty Insurance Policy
15	Property Taxes	Homeowner's Insurance Policy
16	Less: Amount Owed by Seller	Homeowner's Insurance Policy
17	Total Costs	Subtotal
18	Property Taxes	Less: Amount Owed by Seller
19	Subtotal	Total Costs
20	25.38%	64.73%
21	55.08%	18%

Attention: Due to a bug in Google Chrome, this page may not function correctly. Chck here to learn more. 3. The benefits and costs of home ownership Aa Aa E Title search and deed recording fee: $480 Loan origination fee: $900 Title insurance policy-Lender: $375 Mortgage payment (principal and interest): $2,364 Appraisal and survey fees: $600 Home, termite, and radon Inspections: $575 Title insurance policy-Homeowner: $450 Messenger and document fees: $315 . Property taxes on the condominium: $12,000 per year The property taxes and homeowner's policy should be pro-rated. How Should the Costs of Purchasing and Owning a Home Be Categorized? You can categorize the costs associated with home ownership according to whether they are paid at closing, or monthly throughout the life of the mortgage loan, or even after the home is paid off. Amount Paid At Closing Monthly Cost Incurred Consider the following situation, and then complete the form that follows by entering the necessary data, classifying the costs according to whether they represent up-front, monthly costs, or both. Finally, answer the associated questions that follow. Note: Round all dollar amounts to the nearest whole dollar, and if no payment is necessary, record a zero (0) in the space. In case of deduction, enter the dollar amount without minus sign. When Should Michael Pay Housing Costs? On April 1 of next year, Michael is purchasing a $240,000 condominium and has accepted the Fourth Global Bank's offer of a gross annual income of $80,000 and is concerned about how much his one-time up-front costs and recurring monthly costs will be. He's received the following data and form, but he's not certain when he is to pay each cost-at closing, monthly, or both. Your task is to help Michael by completing the form and classifying the costs. Hint: Remember that the purchase is expected to close on the first of April. This means the following: Although a year's worth of a cost, such as the condominium's property taxes, may be owed by the home buyer, a portion of the total cost will be paid by the seller. A portion of a cost, such as the homeowner's insurance premium, may be deposited into an escrow account so that the accumulated funds will be available to pay the entire annual premium when it is due next year. For its mortgage, the bank will perm ment but will also require 5 points. Mortgage insurance is required if the loan-to-value (LTV) ratio is less than 20%. A private mortgage insurance (PMI) policy, if necessary, is expected to cost $816 per year, but is distributed 12 times per year. Michael has purchased a home warranty policy, which carries an annual premium of $480 and is paid 12 times per year, and a homeowner's insurance policy, which costs $2,400 per year. Premiums for these two policies are paid to the respective insurance companies from an escrow account at the bank. Credit report fee: $85 Attorney fees: $1,200 Title search and deed recording fee: $480 Home, termite, and radon Inspections: $575 Loan origination fee: $900 Title insurance policy-Homeowner: $450 Title insurance policy-Lender: $375 Messenger and document fees: $315 Mortgage payment (principal and interest): $2,364 . Property taxes on the condominium: $12,000 per year Appraisal and survey fees: $600 The property taxes and homeowner's policy should be pro-rated. Using the given information, what is the loan-to-value (LTV) ratio required by the Fourth Global Bank? O O 15.00% 117.65% 85.00% Michael's total closing costs are of his mortgage, and his monthly costs are of monthly income. Attention: Due to a bug in Google Chrome, this page may not function correctly. Chck here to learn more. 3. The benefits and costs of home ownership Aa Aa E Title search and deed recording fee: $480 Loan origination fee: $900 Title insurance policy-Lender: $375 Mortgage payment (principal and interest): $2,364 Appraisal and survey fees: $600 Home, termite, and radon Inspections: $575 Title insurance policy-Homeowner: $450 Messenger and document fees: $315 . Property taxes on the condominium: $12,000 per year The property taxes and homeowner's policy should be pro-rated. How Should the Costs of Purchasing and Owning a Home Be Categorized? You can categorize the costs associated with home ownership according to whether they are paid at closing, or monthly throughout the life of the mortgage loan, or even after the home is paid off. Amount Paid At Closing Monthly Cost Incurred Consider the following situation, and then complete the form that follows by entering the necessary data, classifying the costs according to whether they represent up-front, monthly costs, or both. Finally, answer the associated questions that follow. Note: Round all dollar amounts to the nearest whole dollar, and if no payment is necessary, record a zero (0) in the space. In case of deduction, enter the dollar amount without minus sign. When Should Michael Pay Housing Costs? On April 1 of next year, Michael is purchasing a $240,000 condominium and has accepted the Fourth Global Bank's offer of a gross annual income of $80,000 and is concerned about how much his one-time up-front costs and recurring monthly costs will be. He's received the following data and form, but he's not certain when he is to pay each cost-at closing, monthly, or both. Your task is to help Michael by completing the form and classifying the costs. Hint: Remember that the purchase is expected to close on the first of April. This means the following: Although a year's worth of a cost, such as the condominium's property taxes, may be owed by the home buyer, a portion of the total cost will be paid by the seller. A portion of a cost, such as the homeowner's insurance premium, may be deposited into an escrow account so that the accumulated funds will be available to pay the entire annual premium when it is due next year. For its mortgage, the bank will perm ment but will also require 5 points. Mortgage insurance is required if the loan-to-value (LTV) ratio is less than 20%. A private mortgage insurance (PMI) policy, if necessary, is expected to cost $816 per year, but is distributed 12 times per year. Michael has purchased a home warranty policy, which carries an annual premium of $480 and is paid 12 times per year, and a homeowner's insurance policy, which costs $2,400 per year. Premiums for these two policies are paid to the respective insurance companies from an escrow account at the bank. Credit report fee: $85 Attorney fees: $1,200 Title search and deed recording fee: $480 Home, termite, and radon Inspections: $575 Loan origination fee: $900 Title insurance policy-Homeowner: $450 Title insurance policy-Lender: $375 Messenger and document fees: $315 Mortgage payment (principal and interest): $2,364 . Property taxes on the condominium: $12,000 per year Appraisal and survey fees: $600 The property taxes and homeowner's policy should be pro-rated. Using the given information, what is the loan-to-value (LTV) ratio required by the Fourth Global Bank? O O 15.00% 117.65% 85.00% Michael's total closing costs are of his mortgage, and his monthly costs are of monthly income