Wildcat Investment Company, LLC decided to purchase the investment property at 2912 N. Main Street. You have been asked to complete the following tasks to complete the purchase. 1. On the Closing tab of the spreadsheet, complete the Buyers and Sellers closing statements based on the following data (see Exhibit 8-8 in the text for guidance): On June 15, Wilbur and Wilma Wildcat (Sellers) listed their Flagstaff rental property for $599,900 with Re/Max Peak Properties and agreed to pay a 6% commission on the sale price. They have a mortgage for $140,000 remaining on the home. Wildcat Investment Company (Buyer) offered $525,000 for the property. Wilbur and Wilma countered the offer and the parties agreed on a sales price of $550,500. At that time, the Buyer put down $1,000 of earnest money. The Buyer will put 20% down and finance the rest through Bear Down Bank. The sale will close on July 1st at which time Wildcat will take possession. Bear Down requires a loan origination fee of 1% of the value of the loan along with a property appraisal which will cost $400 and a credit report at a cost of $25. Property taxes for the current year are $1,900 and will be paid by the Buyer at year-end. The Buyers title insurance policy will cost $800, and the Sellers title insurance policy will be $1,690. Homeowners insurance will cost the Buyer $2,000. Recording the deed will cost $50 (equally split between the Buyer and Sellers). Endorsements of $150 would be paid by the Buyer. Courier fees will be $25 for the Buyer and $25 for the Sellers. All prorations are based on a 30-day month.

2. You need to make a recommendation to Dr. Eller about the type of financing to use for the purchase. Using the three Amortization tabs on the spreadsheet, calculate your down payment, and your monthly payment and create a loan amortization table for the five years you will hold the investment property for each of the three scenarios. Be sure to note the total interest and principal paid at the bottom of each table. Fully Amortizing: 15-year fixed rate mortgage at 5.25%. Adjustable Rate: 3/1 ARM, 15-year maturity, 4% initial rate which you anticipate will move up to 6% for years 4 and 5. Interest Only: 8.5% interest rate that will not change for the next five years.

Use the picture attached as a format for the spreadsheet, and use the contents as a reference for the calculations. Thanks!

Closing Statement:

Fully Amortizing Loan:

Adjustable rate Mortgage:

1) Use the data provided in the case description to complete the Buyer's and Sellers' Closing Statements below: \begin{tabular}{|c|c|c|c|} \hline \multicolumn{2}{|c|}{ Summary of Buyers Transaction } & \multicolumn{2}{|c|}{ Summary of Sellers' Transaction } \\ \hline Amount Due from Buyer & Cash & Amount Due to Seller & Cash \\ \hline Contract Purchase Price & & Contract Sale Price & \\ \hline Plus: Settlement Charges & & Less: Property Tax Proration & \\ \hline Less: Property Tax Proration & & Less: Payoff of Existing Loan & \\ \hline Less: Earnest Money & & Less: Settlement Charges & \\ \hline Lesss: Mortgage Loan & & Gross Amount Due to Seller & \\ \hline \multicolumn{4}{|l|}{ Net Amount Due from Buyer } \\ \hline & & Seller's Share of Settlement Charges & \\ \hline Buyer's Share of Settlement Charges & & Brokerage Commission & \\ \hline Items Payable in Connection with a Loan & & Title Charges & \\ \hline Loan Origination Fee & & Title Service and Title Insurance & \\ \hline Appraisal Fee & & Deed Preparation & \\ \hline \multicolumn{4}{|l|}{ Homeowner's Insurance } \\ \hline \multirow[t]{2}{*}{ Credit Report } & & Government Recording Charges: & \\ \hline & & Courier Fees & \\ \hline \multicolumn{4}{|l|}{ Title Charges } \\ \hline \multicolumn{4}{|l|}{ Title Service and Title Insurance } \\ \hline \multicolumn{4}{|l|}{ Deed Preparation } \\ \hline \multicolumn{4}{|l|}{ Government Recording Charges: } \\ \hline \multicolumn{4}{|l|}{ Endorsements } \\ \hline \multicolumn{4}{|l|}{ Courier Fees } \\ \hline Total Settlement Charges & & Total Settlement Charges & \\ \hline \end{tabular} 1) Use the data provided in the case description to complete the Buyer's and Sellers' Closing Statements below: \begin{tabular}{|c|c|c|c|} \hline \multicolumn{2}{|c|}{ Summary of Buyers Transaction } & \multicolumn{2}{|c|}{ Summary of Sellers' Transaction } \\ \hline Amount Due from Buyer & Cash & Amount Due to Seller & Cash \\ \hline Contract Purchase Price & & Contract Sale Price & \\ \hline Plus: Settlement Charges & & Less: Property Tax Proration & \\ \hline Less: Property Tax Proration & & Less: Payoff of Existing Loan & \\ \hline Less: Earnest Money & & Less: Settlement Charges & \\ \hline Lesss: Mortgage Loan & & Gross Amount Due to Seller & \\ \hline \multicolumn{4}{|l|}{ Net Amount Due from Buyer } \\ \hline & & Seller's Share of Settlement Charges & \\ \hline Buyer's Share of Settlement Charges & & Brokerage Commission & \\ \hline Items Payable in Connection with a Loan & & Title Charges & \\ \hline Loan Origination Fee & & Title Service and Title Insurance & \\ \hline Appraisal Fee & & Deed Preparation & \\ \hline \multicolumn{4}{|l|}{ Homeowner's Insurance } \\ \hline \multirow[t]{2}{*}{ Credit Report } & & Government Recording Charges: & \\ \hline & & Courier Fees & \\ \hline \multicolumn{4}{|l|}{ Title Charges } \\ \hline \multicolumn{4}{|l|}{ Title Service and Title Insurance } \\ \hline \multicolumn{4}{|l|}{ Deed Preparation } \\ \hline \multicolumn{4}{|l|}{ Government Recording Charges: } \\ \hline \multicolumn{4}{|l|}{ Endorsements } \\ \hline \multicolumn{4}{|l|}{ Courier Fees } \\ \hline Total Settlement Charges & & Total Settlement Charges & \\ \hline \end{tabular}