Closing Statement Problem Answer the following questions based upon the informat

Question

Closing Statement Problem Answer the following questions based upon the information provided herein. Assume you negotiated the sale as a real estate broker and are entitled to a six percent commission The offer and acceptance contract calls for a sales price of $200,000. The buyer has tendered $2,000 for earnest money. The buyer has received loan approval on an 80% loan to value ratio loan. The property is presently encumbered with an existing mortgage with a balance of $130,789.56. The interest on the loan has been paid through May 31, 2017. The interest rate on the mortgage is 4.5%. Closing date is to be June 20,2017. All prorations are based on a 360 day year and 30 day month. The 2016 taxes have not been paid and the 2017 taxes are to be prorated based on the 2016 taxes which were 52.5 mills on an assessed valuation of $40,000. A homeowners insurance policy costing $1,200 for a one year period will be purchased by the buyer and paid at closing. The owners title insurance costing $850, a deed preparation fee of $60.00, and a termite policy costing $500.00 are to be paid by the seller. Title insurance costing $950, a credit report costing $60, and an appraisal fee of $450 will be paid by the buyer. The buyer's loan fees include a 1 point origination fee and $800 of additional costs. In addition, the following documents will be recorded: 1-page deed, 15-page mortgage, and a 1-page release deed. The broker's fee is payable at closing and revenue stamps at the usual rate must be paid by the seller and buyer. The closing fee of $500 will be split 50/50 between the buyer and seller.

How much are the buyers total loan fees?

Explanation / Answer

Buyer total loan fees $

Loan interest for 20 June 17. for 20 days 2400
160000*4.5%*20/60
Insurance policy 1200
Owner title insurance 950
credit report 60
appraisal fee 450
Originating fee & additional cost 800
Broker closing fee 50 % paid by buyer 250
Total    6110

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