What is the amount you owe the lender for prepaid interest

Assignment Help Financial Accounting

Reference no: EM133633571

Question: Loan Calculation Problem: You are securing a loan for a home that you are purchasing in Troy, Michigan. The buyer is selling the home to you for $230,000. You will be putting a 20% down payment on the home so that you do not need to pay any mortgage insurance. You are seeking a 30-year Fixed Rate Mortgage with a stated rate of 4.25%. You will be closing on the home on March 21, 2021. The seller has paid summer taxes on July 1, 2020 totaling $2,928 and winter taxes on December 1, 2020 totaling $1,098. Your homeowner's insurance will total $1,000. Closing costs impacting the TIL statement will total $3,247 and include your prepaid interest to the lender. Your first payment to the lender will be due on May 1, 2021. Your mortgage will include an escrow account for both property taxes and insurance and your lender is using the current property taxes paid by the seller to establish your escrow payment. From all of this information, calculate the following:

What is the amount you owe the lender for prepaid interest that has already been included in your closing cost total?

Reference no: EM133633571

Questions Cloud

Which is the most appropriate next-step intervention : A 51-year-old woman was diagnosed with moderate depression that is associated with depressed mood. Which is the most appropriate next-step intervention?

How does consumer law impact business operations relevant : How does consumer law impact business operations relevant to financial accounting?

What is the correct code to report : An elderly patient with a visually significant cataract of the left eye underwent an uncomplicated phacoemulsification. What is the correct code to report?

Why a genogram is valuable tool in social work with children : Describe why a genogram is a valuable tool in social work with children and families.

What is the amount you owe the lender for prepaid interest : What is the amount you owe the lender for prepaid interest that has already been included in your closing cost total?

Calculate the future worth of the project : Calculate the present worth of the project and Calculate the annual worth of the project - Calculate the future worth of the project

Describe what was the war on drugs : Describe Gans' typology of the types of people who inhabit cities with an example of each. Describe what the war on drugs was, and the ramifications of it.

Which type of professional does this likely describe : Madison is a thirteen-year-old girl who has cerebral palsy. She works with professional during school day. Which type of professional does this likely describe?

Write a short report containing short term finance : Write a short report containing: Your report should include the following headings: 1. An introduction includes an explanation about the required

User Account

All Pages