The house at $314$ Baker Street, in Los Angeles County, sells on January $28$ for $$575,000.$ The

offer that the seller accepts is accompanied by a $$10,000$ good faith deposit. The purchase

agreement calls for the buyer to make a $10\%$ down payment and obtain an $80\%,30-$year

conventional loan with an annual interest rate not to exceed $6(1)/(2)\%.$

The seller agrees to accept a five$-$year straight note secured by a deed of trust for the balance

of the purchase price; the interest rate on this seller second will be $8\%.$ The seller will also pay

up to $$4,000$ toward any discount points charged by the buyer$$s lender. The closing is to take

place on March $14.$

The buyer obtains the necessary loan commitment from Clearwater Bank. The appraised value

of the property is $$580,000.$ The terms of the commitment include an $80\%$ loan for $30$ years

at $6(1)/(2)\%$ annual interest, a $1\%$ origination fee, and two discount points. $($Remember that the

seller has agreed to pay for a portion of the discount points.$)$

The appraisal fee is $$400,$ the credit report costs $$45,$ and the bank is charging a $$200$

document preparation fee. Prepaid interest on the buyer$$s loan will also have to be paid at

closing, to cover interest accruing from the closing date through the end of the month.

At closing, Clearwater Bank will require a reserve account deposit of $$742\mathrm{.}20,$ which is enough

to cover three months$$ worth of property taxes and homeowner$$s insurance. The first payment

on the Clearwater loan will be due on May $1.$

The buyer is purchasing a three$-$year homeowner$$s insurance policy for $$990,$ with the first

year$$s premium $($$$330)$ to be prepaid at closing; that will be handled through escrow. This year$$s

property taxes are $$2,640.$ The seller has paid the first installment, but not the second.

Liens against the property that the seller will pay off at closing include a first deed of trust that

will have a balance of $$398,571\mathrm{.}47$ after the March $1$ payment is made, and a home equity

loan that will have a balance of $$13,425\mathrm{.}35$ after the March $1$ payment is made.

The first lienholder instructs the escrow officer to collect prorated interest, if any, equal to

$$48\mathrm{.}21$ per day. The home equity lender advises the escrow officer that $$3\mathrm{.}14$ in interest per

day will be due on the home improvement loan. Interest on both loans will be charged up to

and including the day of closing. The balance in the seller$$s reserve account for the first loan,

$$251\mathrm{.}50,$ will be refunded at closing.

The $6\%$ brokerage commission is to be shared $50/50$ between the listing broker and the

selling broker; the documentary transfer tax is $55$ cents per $$500$ of value; the premium for

the owner$$s title insurance policy is $$1,080$; the premium for the lender$$s title policy is $$365$;

the pest inspection fee is $$230,$ and the buyer has agreed to pay that; and the escrow fee, to

be divided evenly between the parties, is $$600.$ The buyer$$s recording costs will be $$35$; the

seller$$s recording costs will be $$19.$

Hint: first calculate how the purchase price of $$575,000$ will be paid. There is a $1$st mortgage, a

$2$nd mortgage $($seller financing$)$ and a down payment, of which the good faith deposit is a

portion.Settlement Statement

$\backslash$table$[[,$Buyer,Seller$],[,$Debits,Credits,Debits,Credits$],[$Purchase Price,$575,000\mathrm{.}00,,,575,000\mathrm{.}00],[$Deposit$,,10,000\mathrm{.}00,,],[$Buyer$\text{'}$s new bank loan$],[$Loan Origination fee$],[$Loan Discount points,,,$4,000\mathrm{.}00,],[$Appraisal Cost,$400\mathrm{.}00,,,],[$Credit report,$45\mathrm{.}00,,,],[$Document preparation fee,$200\mathrm{.}00,,,],[$Prepaid Interest on new loan$],[$Reserve account for new loan,$742\mathrm{.}00,,,],[$Homeowner$\text{'}$s Ins. premium $(1$st year,$330\mathrm{.}00,,,],[$Seller Carryback Financing$],[$Payoff seller's first loan,,,$398,571\mathrm{.}47,],[$Prorated interest for seller's first loan$],[$Reserve account for seller's first loar,,,,$251\mathrm{.}50],[$Payoff of seller's home equity loan,,,$13,425\mathrm{.}35,],[$Prorated interest for seller's equity loan$],[\backslash$table$[[$Property taxes$]]],[$Sales commission: listing broker$],[$Sales commission: selling broker$],[$Documentary transfer tax$],[$Owner$\text{'}$s title insurance,,,$1,080\mathrm{.}00,],[$Lender$\text{'}$s title insurance,$365\mathrm{.}00,,,],[$Pest inspection,$230\mathrm{.}00,,,],[$Escrow fee,$300\mathrm{.}00,,39\mathrm{.}00,],[$Recording fee,$35\mathrm{.}00,,43,120\mathrm{.}22,],[$Balance due from buyer,,$567,647\mathrm{.}00,,],[$Balance due to seller,,,$115,015\mathrm{.}46,],[$TOTAL$,$$$577,647\mathrm{.}00,$$$577,647\mathrm{.}00,$$$575,251\mathrm{.}50,$$$575,251\mathrm{.}50]]$

Please answer as soon as possible. Make sure to provide formulas for the grayed out parts