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On April 1 of next year, Ji is purchasing a $195,000 condominium and has accepted the Tenth National Bank's offer of a ten-yea $161,850 loan
On April 1 of next year, Ji is purchasing a $195,000 condominium and has accepted the Tenth National Bank's offer of a ten-yea $161,850 loan with an interest rate of 10%. He has a gross annual income of $110,000 and is concerned about how much his one-time up-front costs and recurring manthly costs will be He's received the following data and form, buthe's not certain when he is to pay each cost-at closing, manthly, or both. Your task is to help Ji 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 follawing Although a year's warth of a cost,such as the condominium's property taxes, may be owed by thehome buyer, a portion of the total cost wil 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 17% down payment 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 $647 per year, but is distributed 12 times per J has purchased a home wamanty policy, which carries an annual premium of480 and is paid 12 times per year, and a homeowner's insurance policy, which costs $1,950 per year. Premiums for these two policies are paid to the respective insurance companies from an escrow account at the bank. * Credit repart fee: $50D Title search and deed recording fee: $375 * Homer termite, and radon inspections: 525 Loan origination fee: $975 Tide insurance pollcy Lender: $390 * Mortgage payment (principal and interest): Tide insurance policy-Homeowner: $440 * Messenger and document fees: $235 * 2,135 Property taxes on the condominium: $9,750 per year The property taxes and homeowner's policy should be pro-rated Appraisal and survey fees: $450 Amount Paid Cost Incurred At Closing Using the given information, what is the loan-ta-value (LTV) ratio required by the Tenth National Bank? O 17.00% 83.00% 0 120.48% i's total closing costs are- of his martgage, and his manthly costs are of manthly income
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