Upload
felix-combs
View
46
Download
0
Tags:
Embed Size (px)
DESCRIPTION
SECTION. 10-3. pp. 349-350. Closing Cost. Figure out: total closing costs. Section Objective. Key Words to Know. closing costs (p. 349) The costs of transferring ownership of property, such as credit checks and title searches, to the buyer by the seller. Formula. - PowerPoint PPT Presentation
Citation preview
Closing Cost pp. 349-35010-3SECTIONSECTION
• Click to edit Master text styles
• Second level
• Third level
• Fourth level
• Fifth level
2
SECTION
Copyright © Glencoe/McGraw-Hill
10-3
Section ObjectiveSection ObjectiveFigure out:
• total closing costs
• Click to edit Master text styles
• Second level
• Third level
• Fourth level
• Fifth level
3
SECTION
Copyright © Glencoe/McGraw-Hill
10-3
closing costs (p. 349)
The costs of transferring ownership of property, such as credit checks and title searches, to the buyer by the seller.
Key Words to KnowKey Words to Know
• Click to edit Master text styles
• Second level
• Third level
• Fourth level
• Fifth level
4
SECTION
Copyright © Glencoe/McGraw-Hill
10-3
Closing Costs = Sum of Bank Fees
Formula Formula
• Click to edit Master text styles
• Second level
• Third level
• Fourth level
• Fifth level
5
SECTION
Copyright © Glencoe/McGraw-Hill
10-3
Why might the lender charge additional costs (over and above the loan documents)?
The Hunt to Find a Home p. 349The Hunt to Find a Home p. 349
• Click to edit Master text styles
• Second level
• Third level
• Fourth level
• Fifth level
6
SECTION
Copyright © Glencoe/McGraw-Hill
10-3
Trudy and Germane Hallett have been granted a mortgage loan at an annual interest rate of 8 percent for 25 years by State Bank. The home has a selling price of $95,500. They need a 15 percent down payment. State Bank will allow them to finance the closing costs as part of the mortgage.
What are the total closing costs?
What is actual amount financed with the mortgage?
Example 1Example 1
• Click to edit Master text styles
• Second level
• Third level
• Fourth level
• Fifth level
7
SECTION
Copyright © Glencoe/McGraw-Hill
10-3
Find the down payment.
$95,500 × 15% = $14,325
Example 1 Answer: Example 1 Answer: Step 1Step 1
• Click to edit Master text styles
• Second level
• Third level
• Fourth level
• Fifth level
8
SECTION
Copyright © Glencoe/McGraw-Hill
10-3
Find the amount of the mortgage.
$95,500 – $14,325 = $81,175
Example 1 Answer: Example 1 Answer: Step 2Step 2
• Click to edit Master text styles
• Second level
• Third level
• Fourth level
• Fifth level
9
SECTION
Copyright © Glencoe/McGraw-Hill
10-3
Find the closing costs.
Example 1 Answer: Example 1 Answer: Step 3Step 3
• Click to edit Master text styles
• Second level
• Third level
• Fourth level
• Fifth level
10
SECTION
Copyright © Glencoe/McGraw-Hill
10-3
Find the actual amount financed.
Amount of Mortgage + Closing Costs
$81,175 + $3,194.96 = $84,369.96
Example 1 Answer: Example 1 Answer: Step 4Step 4
• Click to edit Master text styles
• Second level
• Third level
• Fourth level
• Fifth level
11
SECTION
Copyright © Glencoe/McGraw-Hill
10-3
Joseph and Marla Liebowitz have agreed to purchase a house for $362,000. They made a down payment of 30 percent and are financing the remaining amount. The total closing costs are 3.25 percent of the mortgage loan.
What are the closing costs?
What is the total mortgage loan?
Practice 1Practice 1
• Click to edit Master text styles
• Second level
• Third level
• Fourth level
• Fifth level
12
SECTION
Copyright © Glencoe/McGraw-Hill
10-3
Closing costs: $8,235.50
Total mortgage loan: $261,635.50
Practice 1 AnswerPractice 1 Answer
Closing Costs10-3END OF SECTIONEND OF SECTION