on August 20, Mr. and Mrs. Cleaver decide to buy a property from Mr. and Mrs. Ward for $111,500. on August 30, Mr. and Mrs. Cleaver obtained a loan commitment from OK national bank for an $85,600 conventional loan at 5% for 30 years. The lender informed Mr. and Mrs. Cleaver that a $2230 loan origination fee will be required to obtain the loan. The loan closing is to take place September 22. 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 year's premium for hazard insurance to Rock of Gibraltar Insurance Company. A breakdown of expected settlement costs, provided by OK national bank when Mr. and Mrs. Cleaver inspect the uniform settlement statement as required under RESPA on September 21, is as follows: (see photo)

QUESTIONS:

a) what are the amounts to from the borrower and due to the seller at closing?

b) what would be the disclosed annual percentage rate as required under the truth-in-lending act?

c) when will the first regular monthly mortgage payment be due from the borrower?

I. Transactions between buyer-borrower and third parties: a. Recording fees-mortgage b. Real estate transfer tax c. Recording fees/document preparation d. Hazard insurance-one-year policy-Rock of Gibraltar Insurance company $43.00 e. Peggy Prudent-attorney f. Inspections g. Title insurance fee (Landco title company) h. Landeo title Company-Closing fee II. Transactions between seller and third parties: a. Release statement-seller's mortgage b. Payoff-seller's mortgage (Home State Bank) c. Real estate brokerage fee (6\% Fast Deal Realty) 5.60 III. Buyer-borrower and lender Information: o. Amount of Loan b. Prepaid interest is owed from closing through september 30 , which equals nine days (inclusive). Regular payments to begin on November 1. [0.0585,600)365]9 c. Property tax escrow-two months required d. Loan origination fee IV. Buyer and seller information: 32,780.00 6,365.00 a. Purchase price b. Deposit paid by cleaver to Ward (paid in escrow to oKar National Bank) $85,669 c. Real estate tax proration (taxes for the current year to be paid in arrears by BuYER to \$ 111,500.60 1,526.00 county next January 1: $826 per year). Therefore, because the SELLER will own the property from January 1 to September 22, or 264 days. Therefore, the Buyer owes for the 101 days prior to closing and transfer of title. Therefore, a credit for part of the $826-per-year real estate tax (for 264 days) is due to buyer from seller at clasing. I. Transactions between buyer-borrower and third parties: a. Recording fees-mortgage b. Real estate transfer tax c. Recording fees/document preparation d. Hazard insurance-one-year policy-Rock of Gibraltar Insurance company $43.00 e. Peggy Prudent-attorney f. Inspections g. Title insurance fee (Landco title company) h. Landeo title Company-Closing fee II. Transactions between seller and third parties: a. Release statement-seller's mortgage b. Payoff-seller's mortgage (Home State Bank) c. Real estate brokerage fee (6\% Fast Deal Realty) 5.60 III. Buyer-borrower and lender Information: o. Amount of Loan b. Prepaid interest is owed from closing through september 30 , which equals nine days (inclusive). Regular payments to begin on November 1. [0.0585,600)365]9 c. Property tax escrow-two months required d. Loan origination fee IV. Buyer and seller information: 32,780.00 6,365.00 a. Purchase price b. Deposit paid by cleaver to Ward (paid in escrow to oKar National Bank) $85,669 c. Real estate tax proration (taxes for the current year to be paid in arrears by BuYER to \$ 111,500.60 1,526.00 county next January 1: $826 per year). Therefore, because the SELLER will own the property from January 1 to September 22, or 264 days. Therefore, the Buyer owes for the 101 days prior to closing and transfer of title. Therefore, a credit for part of the $826-per-year real estate tax (for 264 days) is due to buyer from seller at clasing