How Should the Costs of Purchasing and Owning a Home Be Categorized? You can cabegorize the costs assodiated 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 Consider the following sihuation, and then complete the form that follows by entering the necessary data, classifying the costs accorcing to whether they represent up fromt, monthly costs, or both. Finalily, answer the assodiated questions that folow. 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 Diego Pay Housing Costs? On April 1 of next year, Diego is purchasing a $195,000 condominium and has accepted the Tenth National Bank's offer of a ten-year S 161,850 loan with an interest rate of 5%. He has a gross annual incom of $120,000 and is concerned about how much his one-time up-front costs and recurring monthly costs will be. Pi He's recelved 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 Diego by completing the form and classifying the costs. Hint: Remember that the purchase is expected to close on the first of Apnil. This means the following Pa Although year's worth of a cost, such as the condominium's property taxes, may be owed by the home bye, a portion of the total cost will be paid by the seler 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 permit a 17% down payment but w-also require 4 points. Mortgage insurance i, rea und r the loan-to-value (LTV)ratio is less than 20%. * h as the homeowner's insurance premium, may A .A private mortgage insurance (PMI) policy,if necessary, is expected to cost s647 per year, but is distributed 12 times per home warranty policy, which carries an annual premium of S480 and is paid 12 times per year, and Diego has purchased homeowner's insurance policy, which costs $1,950 per yeor. Pemiums for these two policies are paid to the respective insurance companies from an escrow account at the bank. Credit report fee: $50 Title search and deed recording fee: $375 Loan origination fee: 5975 Atto mey fees: 51,000 Home, termite, and radon Inspections:$$25 Tide insurance policy Homeowner: $440 Messenger and document fees: $235 46 PM 0/8/2018 . Tite insurance pelcy Lendar 5390 Mortpege payment (prindpal and interest):$1,720Propeity taxes on the condominium: $4,875 per year Aporaisel and survey fees: $430 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 cabegorize the costs assodiated 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 Consider the following sihuation, and then complete the form that follows by entering the necessary data, classifying the costs accorcing to whether they represent up fromt, monthly costs, or both. Finalily, answer the assodiated questions that folow. 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 Diego Pay Housing Costs? On April 1 of next year, Diego is purchasing a $195,000 condominium and has accepted the Tenth National Bank's offer of a ten-year S 161,850 loan with an interest rate of 5%. He has a gross annual incom of $120,000 and is concerned about how much his one-time up-front costs and recurring monthly costs will be. Pi He's recelved 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 Diego by completing the form and classifying the costs. Hint: Remember that the purchase is expected to close on the first of Apnil. This means the following Pa Although year's worth of a cost, such as the condominium's property taxes, may be owed by the home bye, a portion of the total cost will be paid by the seler 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 permit a 17% down payment but w-also require 4 points. Mortgage insurance i, rea und r the loan-to-value (LTV)ratio is less than 20%. * h as the homeowner's insurance premium, may A .A private mortgage insurance (PMI) policy,if necessary, is expected to cost s647 per year, but is distributed 12 times per home warranty policy, which carries an annual premium of S480 and is paid 12 times per year, and Diego has purchased homeowner's insurance policy, which costs $1,950 per yeor. Pemiums for these two policies are paid to the respective insurance companies from an escrow account at the bank. Credit report fee: $50 Title search and deed recording fee: $375 Loan origination fee: 5975 Atto mey fees: 51,000 Home, termite, and radon Inspections:$$25 Tide insurance policy Homeowner: $440 Messenger and document fees: $235 46 PM 0/8/2018 . Tite insurance pelcy Lendar 5390 Mortpege payment (prindpal and interest):$1,720Propeity taxes on the condominium: $4,875 per year Aporaisel and survey fees: $430 The property taxes and homeowner's policy should be pro-rated