Buyer's Cost

Question 1

Used to show a buyer how much cash will be need at the closing table for the down payment and the closing costs

Answer 1

Estimate purchaser cost/Buyer’s Cost Sheet

Question 2

If a purchaser closes on the 1st of the month, their first mortgage payment is due….

Answer 2

On the 1st of the following month

Question 3

If a purchaser closes on any day other than the first of the month, their first mortgage payment is due… Ex. Closing on 4/15….when will mortgage be due

Answer 3

On the 1st of the month after next….skip a month…

June 1st

Question 4

Interest is paid in….

Answer 4

arrears

Question 5

When calculating interest adjustment, the BUYER pays for the day of closing on his/her loan

Answer 5

When calculating interest adjustments, the SELLER pays for the day of closing of his/her old loan

Question 6

CALCULATING INTEREST-DIVIDE BY ______ to get daily rate

Answer 6

360 (days in the year)

Question 7

Transfer and intangibles taxes can be paid by….

Answer 7

buyer or seller (negotiable)

Question 8

PMI stands for

Answer 8

private mortgage insurance

Question 9

Private mortgage insurance applies to loans with LTV (loan to value)greater than

Answer 9

80%

Question 10

PMI stands for…

Answer 10

private mortgage insurance

Question 11

Private mortgage insurance applies to loans with LTV (loan to value)greater than

Answer 11

80%

Question 12

MIP stands for…

Answer 12

Mortgage insurance premium

Question 13

MIP stands for…

Answer 13

Mortgage insurance premium

Question 14

MIP is paid

Answer 14

up front at closing

Question 15

PMI is paid

Answer 15

monthly after closing

Question 16

Current up front MIP rate charged to borrower (UFMIP)

Answer 16

1.75% of loan

Question 17

Current up front MIP rate charged to borrower (UFMIP)

Answer 17

1.75% of loan

Question 18

A point is equal to

Answer 18

1% of the loan amount

Question 19

When calculating insurance divide by

Answer 19

365 (days in a year) to get daily rate