When Should Lei Pay Housing Costs? On April 1 of next year, Lei is purchasing a $150,000 condominium and has accepted the Fifth State Bank's offer of a ten-year $127,500 loan with an interest rate of 7%. She has a gross annual income of $110,000 and is concerned about how much her one-time up-front costs and recurring monthly costs will be. She's received the following data and form, but she's not certain when she is to pay each cost-at closing, monthly, or both. Your task is to help Lei 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 condominium'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 15% down payment but will also require 2 points. Mortgage insurance required if the loan-to-value (LTV) ratio is less than 20%. A private mortgage insurance (PMI) policy, if necessary, is expected to cost $510 per year, but is distributed 12 times per year. Lei 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 $1,500 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 Attomey fees: $750 Title search and deed recording fee: $300 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): $1,478 Property taxes on the condominium: $7,500 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 Fifth State Bank? 117.65% 0 85.00% 0 15.00% Lei's total closing costs are of her mortgage, and her monthly costs are of monthly income. When Should Lei Pay Housing Costs? On April 1 of next year, Lei is purchasing a $150,000 condominium and has accepted the Fifth State Bank's offer of a ten-year $127,500 loan with an interest rate of 7%. She has a gross annual income of $110,000 and is concerned about how much her one-time up-front costs and recurring monthly costs will be. She's received the following data and form, but she's not certain when she is to pay each cost-at closing, monthly, or both. Your task is to help Lei 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 condominium'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 15% down payment but will also require 2 points. Mortgage insurance required if the loan-to-value (LTV) ratio is less than 20%. A private mortgage insurance (PMI) policy, if necessary, is expected to cost $510 per year, but is distributed 12 times per year. Lei 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 $1,500 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 Attomey fees: $750 Title search and deed recording fee: $300 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): $1,478 Property taxes on the condominium: $7,500 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 Fifth State Bank? 117.65% 0 85.00% 0 15.00% Lei's total closing costs are of her mortgage, and her monthly costs are of monthly income