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On August 2 0 , Mr . and Mrs . Cleaver decided to buy a property from Mr . and Mrs . Ward for $
On August Mr and Mrs Cleaver decided to buy a property from Mr and Mrs Ward for $ On August Mr and Mrs Cleaver obtained a loan commitment from OKAY National Bank for an $ conventional loan at percent for years. The lender informs Mr and Mrs Cleaver that a $ loan origination fee will be required to obtain the loan. The loan closing is to take place September In addition, escrow accounts will be required for all prorated property taxes and hazard insurance; however, no mortgage insurance is necessary. The buyer will also pay a full years premium for hazard insurance to Rock of Gibraltar Insurance Company. A breakdown of expected settlement costs, provided by OKAY National Bank when Mr and Mrs Cleaver inspect the uniform settlement statement as required under RESPA on September is as follows:
I. Transactions between buyerborrower and third parties:
a Recording feesmortgage $
b Real estate transfer tax
c Recording feesdocument preparation
d Hazard insuranceoneyear policyRock of Gibraltar Insurance company
e Peggy Prudentattorney
f Inspections
g Title insurance fee Landco title Company
h Landco title CompanyClosing fee
II Transactions between seller and third parties:
a Release statementsellers mortgage
b PayoffSellers mortgage Home State Bank
c Real estate brokerage fee Fast Deal Realty
III. Buyerborrower and lender Information:
a Amount of loan $
b Prepaid interest is owed from closing through september which equals nine days inclusive Regular payments to begin on November times : times
c Property tax escrowtwo months required
d Loan origination fee
IV Buyer and seller information:
a Purchase price $
b Deposit paid by Cleaver to Ward paid in escrow to OKAY National Bank
c Real estate tax proration taxes for the current year to be paid in arrears by BUYER to county next January : $ per year Therefore, because the SELLER will own the property from January to September or days. Therefore, the Buyer owes for the days prior to closing and transfer of title. Therefore, a credit for part of the $peryear real estate tax for days is due to buyer from seller at closing. $
Required:
a What are the amounts due from the borrower and due to the seller at closing?
b What would be the disclosed annual percentage rate as required under the TruthinLending Act?
c When will the first regular monthly mortgage payment be due from the borrower?
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