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. 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 Diego Pay Housing Costs? On April 1 of next year, Diego is purchasing a $165,000 house and has accepted the Tenth National Bank's offer of a ten-year $141,900 loan with an interest rate of 9%. He has a gross annual income of $90,000 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 Diego 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: 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. 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 Diego Pay Housing Costs? On April 1 of next year, Diego is purchasing a $165,000 house and has accepted the Tenth National Bank's offer of a ten-year $141,900 loan with an interest rate of 9%. He has a gross annual income of $90,000 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 Diego 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