option of the first filling the blanck at the last line is a) 26.28 b)58.17 and second is a)16.2 b) 43.03

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 David Pay Housing Costs? On April 1 of next year, David is purchasing a $240,000 house and has accepted the Tenth National Bank's offer of a ten-year $199,200 loan with an interest rate of 8%. 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 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 house'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 17% down payment but will also require 3 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 $797 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 $2,400 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 Attorney fees: $1,200 Title search and deed recording fee: $480 Home, termite, and radon Inspections: $575 Loan origination fee: $900 Title insurance policy-Homeowner: $450 Title insurance policy-Lender: $375 Messenger and document fees: $315 Mortgage payment (principal and interest): $2,421 Property taxes on the house: $6,000 per year Appraisal and survey fees: $600 The property taxes and homeowner's policy should be pro-rated. Amount Paid At Closing Monthly Cost Incurred Using the given information, what is the loan-to-value (LTV) ratio required by the Tenth National Bank? 120.48% 17.00% 83.00% David's total closing costs are of his mortgage, and his monthly costs are of monthly income. 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 David Pay Housing Costs? On April 1 of next year, David is purchasing a $240,000 house and has accepted the Tenth National Bank's offer of a ten-year $199,200 loan with an interest rate of 8%. 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 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 house'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 17% down payment but will also require 3 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 $797 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 $2,400 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 Attorney fees: $1,200 Title search and deed recording fee: $480 Home, termite, and radon Inspections: $575 Loan origination fee: $900 Title insurance policy-Homeowner: $450 Title insurance policy-Lender: $375 Messenger and document fees: $315 Mortgage payment (principal and interest): $2,421 Property taxes on the house: $6,000 per year Appraisal and survey fees: $600 The property taxes and homeowner's policy should be pro-rated. Amount Paid At Closing Monthly Cost Incurred Using the given information, what is the loan-to-value (LTV) ratio required by the Tenth National Bank? 120.48% 17.00% 83.00% David's total closing costs are of his mortgage, and his monthly costs are of monthly income