PERSONAL FINANCE
5th Edition
ISBN: 9781308498706
Author: Kapoor
Publisher: McGraw Hill
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Question
Chapter 9, Problem 9.4PQ7
Summary Introduction
To explain:
The way closing costs affect a person’s ability to afford a home purchase.
Introduction: Closing costs refer to the additional cost to buy the home or a real estate property at the time of closing the deal. It is the cost over the mortgage amount for the settlement purposes. It is also called the settlement cost.
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4. On August 20, Mr. and Mrs. Cleaver decided to buy a property from Mr. and Mrs. Ward for
$105,000. On August 30, Mr. and Mrs. Cleaver obtained a loan commitment from OKAY
National Bank for an $84,000 conventional loan at 5 percent for 30 years. The lender 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 accounts 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:
I. Transactions between buyer-borrower and third parties:
a. Recording fees--mortgage
b. Real estate transfer tax
c. Recording fees/document…
Chapter 9 Solutions
PERSONAL FINANCE
Ch. 9 - Prob. 9.1PQ1Ch. 9 - Prob. 9.1PQ2Ch. 9 - Prob. 9.2PQ1Ch. 9 - Which components of a lease are likely to be most...Ch. 9 - Prob. 9.3PQ1Ch. 9 - Prob. 9.3PQ2Ch. 9 - Prob. 9.3PQ3Ch. 9 - Prob. 9.3PQ4Ch. 9 - Prob. 9.3PQ5Ch. 9 - Prob. 9.4PQ1
Ch. 9 - Prob. 9.4PQ2Ch. 9 - Prob. 9.4PQ3Ch. 9 - Prob. 9.4PQ4Ch. 9 - Prob. 9.4PQ5Ch. 9 - Prob. 9.4PQ6Ch. 9 - Prob. 9.4PQ7Ch. 9 - Prob. 9.5PQ1Ch. 9 - Prob. 9.5PQ2Ch. 9 - Prob. 9.5PQ3Ch. 9 - Prob. 1FPPCh. 9 - Prob. 2FPPCh. 9 - Prob. 3FPPCh. 9 - Prob. 4FPPCh. 9 - Prob. 5FPPCh. 9 - Prob. 6FPPCh. 9 - Prob. 7FPPCh. 9 - Prob. 8FPPCh. 9 - Prob. 1FPACh. 9 - Prob. 2FPACh. 9 - Prob. 3FPACh. 9 - Prob. 4FPACh. 9 - Prob. 5FPACh. 9 - Prob. 6FPACh. 9 - Prob. 7FPACh. 9 - Prob. 8FPACh. 9 - Prob. 1FPCCh. 9 - Prob. 2FPCCh. 9 - Prob. 3FPCCh. 9 - Prob. 1CCCh. 9 - Prob. 2CCCh. 9 - Prob. 3CCCh. 9 - Prob. 4CCCh. 9 - Prob. 5CCCh. 9 - The Housing Decision: Factors and Finances
Five...Ch. 9 - Prob. 1DSDCh. 9 - Prob. 2DSD
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