please answer questions A-C with formulas for explanation.
3. On August 20, Mr. and Mrs. Cleaver decided to buy a property from Mr. and Mrs. Ward for S105.000. On August 30, Mr. and Mrs. Cleaver obtained a loan commitment from OKAY National Bank for an $84.000 conventional loan at 10 percent for 30 years. The kender informs Mr. and Mrs. Cleaver that a $2,100 loan origination fee will be required to obtain the loan. The loan closing is to take place September 22. In addition, escrow sccounts 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 OKAY National Bank when Mr. and Mrs. Cleaver inspect the uniform settlement statement as required under RESPA on September 21, is as follows: 1. Transactions between buyer-borrower and third parties: a. Recording fees-mortgage $ 30.00 b. Real estate transfer tax 225.00 c. Recording fees/document prep. 200.00 d. Hazard insurance-one-ycar policy-Rock of Gibraltar Ins. Co. 420.00 c. Peggy Prudent-attorney 150.00 f. Inspections 50.00 & Title insurance fee (Landco Title Co.) 400.00 h. Landco Title Co--closing for 125.00 II. Transactions between seller and third parties: a. Release statement seller's mortgage 5.00 b. Payoff-seller's mortgage (Home State Bank) 32,715.00 c Real estate brokerage foe (6% Fast Deal Realty) 6,300.00 II. Buyer borrower and lender information: a. Amount of loan $ 84,000.00 b. Prepaid interest is owed from closing through September 30, which oquals nine days (inclusive). Regular payments to begin on November 1.7.10 X 84,000) + 3651 - 9 207.12 c. Property tax escrow two months required 13333 d. Loun origination fee 2,100.00 IV. Buyer and seller information: a. Purchase price $105,000.00 b. Deposit paid by Cleaver to Ward (paid in escrow to OKAY National Bank) 1.500.00 Real estate tax proration (luxes for the current year to be paid in areas by buyer to county next January 1: 5800 per year) Sellerowns property from $ 578.63 January I to September 22, or 264 dyk Buyer owes for remaining 101 day Therefore, a credit for part of the 500 per year real estate tax (for 261 days) is due to buyer from seller at closing Required What are the amounts due from the borrower and due to the seller at closing? 2. 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? 55 56 3. On August 20, Mr. and Mrs. Cleaver decided to buy a property from Mr. and Mrs. Ward for S105.000. On August 30, Mr. and Mrs. Cleaver obtained a loan commitment from OKAY National Bank for an $84.000 conventional loan at 10 percent for 30 years. The kender informs Mr. and Mrs. Cleaver that a $2,100 loan origination fee will be required to obtain the loan. The loan closing is to take place September 22. In addition, escrow sccounts 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 OKAY National Bank when Mr. and Mrs. Cleaver inspect the uniform settlement statement as required under RESPA on September 21, is as follows: 1. Transactions between buyer-borrower and third parties: a. Recording fees-mortgage $ 30.00 b. Real estate transfer tax 225.00 c. Recording fees/document prep. 200.00 d. Hazard insurance-one-ycar policy-Rock of Gibraltar Ins. Co. 420.00 c. Peggy Prudent-attorney 150.00 f. Inspections 50.00 & Title insurance fee (Landco Title Co.) 400.00 h. Landco Title Co--closing for 125.00 II. Transactions between seller and third parties: a. Release statement seller's mortgage 5.00 b. Payoff-seller's mortgage (Home State Bank) 32,715.00 c Real estate brokerage foe (6% Fast Deal Realty) 6,300.00 II. Buyer borrower and lender information: a. Amount of loan $ 84,000.00 b. Prepaid interest is owed from closing through September 30, which oquals nine days (inclusive). Regular payments to begin on November 1.7.10 X 84,000) + 3651 - 9 207.12 c. Property tax escrow two months required 13333 d. Loun origination fee 2,100.00 IV. Buyer and seller information: a. Purchase price $105,000.00 b. Deposit paid by Cleaver to Ward (paid in escrow to OKAY National Bank) 1.500.00 Real estate tax proration (luxes for the current year to be paid in areas by buyer to county next January 1: 5800 per year) Sellerowns property from $ 578.63 January I to September 22, or 264 dyk Buyer owes for remaining 101 day Therefore, a credit for part of the 500 per year real estate tax (for 261 days) is due to buyer from seller at closing Required What are the amounts due from the borrower and due to the seller at closing? 2. 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? 55 56
