Economics based on buyer and seller costs
Using the information provided below, calculate the buyer‘s and seller‘s costs and
credits as they would appear on the Closing Disclosure Form (CDF)-
When calculating these costs, the complications can occur when you figure the taxes
and shared lender fees,
Property located in Virginia
Closing Date: October 15
First payment due: December 1
Sales Price: $280,000
Earnest money deposit: $5,000
Down payment: $56,000
Existing loan to be paid off: $125,000 @ 4.7596 interest
New loan amount: $220,000 @ 4.5096 interest, for 30 years
Total of three points, split by buyer and seller
Escrow Gmpound) of two months
Annual property taxes $2,400, paid through December 31
Hazard insurance: $330 for one-year policy
Real estate broker commission: 6 percent
Owner's title policy: $250
Lenders title policy: $750
Survey $125
Recording fees charged to buyer: $75
Lender fees charged to buyer: $1,100
Transfer tax $180 paid by seller
Termite inspection: $125
Roof inspection a repair: $2,100
Homeowner warranty provided by seller: $500