CLOSING WORKSHEET EXERCISE
Use the following data and attached worksheet to answer the following questions:
Closing Date (day belongs to the Seller): September 1 (day 244 of the year)
Selling Price: $262,500
Earnest Money: $3,600
Buyer’s loan Amount: $236,250 (90% LTV; 30-year term; 5% annual interest)
Points (Buyer pays): 2 points (a point is 1% of the loan amount)
Monthly payment on Buyer’s new loan: $1,268.24 (includes first month interest of $984.37). Prepaid
interest will cover September 2 – September 30.
The Lender is requiring Buyer to put into Escrow one-half of next year’s expected property insurance
and taxes.
Existing property insurance: $700 (paid by Seller for the entire year).
Expected property insurance for the next year: $700.
Current year Property Tax: $3,300 (will be billed to Buyer next year).
Broker’s Commission (Seller pays): 6%
