On April 1 of next year, David is purchasing a $165,000 condominium and has accepted the Fifth State Bank's offer of a ten-year $138,600 loan with an interest rate of 10%. He has a gross annual income of $120,000 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 David 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 permit a 16% down payment but will also require 4 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 $554 per year, but is distributed 12 times per year David 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 $1,650 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 Title search and deed recording fee: $330 Attorney fees: $825 Home, termite, and radon Inspections: $575 Title insurance policy-Homeowner: $450 Messenger and document fees: $315 Loan origination fee: $900 Title insurance policy-Lender: 375 . Mortgage payment (principal and interest): 1,829 . Property taxes on the condominium: 4,125 per year Appraisal and survey fees: $600 The property taxes and homeowner's policy should be pro-rated Amount Paid Cost Incurred Down payment Mortgage points At Closing Monthly 85 Loan origination fee 600 825 Home, termite, and radon inspections Title search and deed recording fee Messenger and document fees 375 Title insurance-Homeowner policy Loan payments (P8I) 46 Warranty insurance policy Property taxes Homeowner's insurance policy Subtotal Less: Amount owed by seller Total costs 40