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Using Excel (no handwritten forms) fill out the settlement statement form for the transaction described below. The various closing costs will be allocated between the parties in the customary way unless otherwise noted. Use a 360-day year and 30-day month for your prorations. Round dollar amounts to four decimal places for each step in your calculations. (Digits from 1 through 4 should be rounded down; digits from 5 through 9 should be rounded up.)DO NOT change anything else in the worksheet.DO NOT fill in any white cells.The gray cells require formulas, and the yellow cells require numbers provided in the case.

The house at 314 Baker Street, in Los Angeles County, sells on January 28 for $575,000. The

offer that the seller accepts is accompanied by a $10,000 good faith deposit. The purchase

agreement calls for the buyer to make a 10% down payment and obtain an 80%, 30-year

conventional loan with an annual interest rate not to exceed 6%.

The seller agrees to accept a five-year straight note secured by a deed of trust for the balance of the purchase price; the interest rate on this seller second will be 8%. The seller will also pay up to $4,000 toward any discount points charged by the buyer's lender.The closing is to take place on March 14.

The buyer obtains the necessary loan commitment from Clearwater Bank. The appraised value

of the property is $580,000. The terms of the commitment include an 80% loan for 30 years

at 6% annual interest, a 1% origination fee, and two discount points. (Remember that the

seller has agreed to pay for a portion of the discount points.)

The appraisal fee is $400, the credit report costs $45, and the bank is charging a $200 document preparation fee. Prepaid interest on the buyer's loan will also have to be paid at closing, to cover interest accruing from the closing date through the end of the month.

At closing, Clearwater Bank will require a reserve account deposit of $742.20, which is enough

to cover three months' worth of property taxes and homeowner's insurance. The first payment

on the Clearwater loan will be due on May 1.

The buyer is purchasing a three-year homeowner's insurance policy for $990, with the first

year's premium ($330) to be prepaid at closing; that will be handled through escrow. This year's

property taxes are $2,640. The seller has paid the first installment, but not the second.

Liens against the property that the seller will pay off at closing include a first deed of trust that

will have a balance of $398,571.47 after the March 1 payment is made, and a home equity

loan that will have a balance of $13,425.35 after the March 1 payment is made.

The first lienholder instructs the escrow officer to collect prorated interest, if any, equal to $48.21 per day. The home equity lender advises the escrow officer that $3.14 in interest per day will be due on the home improvement loan.Interest on both loans will be charged up to and including the day of closing. The balance in the seller's reserve account for the first loan, $251.50, will be refunded at closing.

The 6% brokerage commission is to be shared 50/50 between the listing broker and the

selling broker; the documentary transfer tax is 55 cents per $500 of value; the premium for

the owner's title insurance policy is $1,080; the premium for the lender's title policy is $365;

the pest inspection fee is $230, and the buyer has agreed to pay that; and the escrow fee, to

be divided evenly between the parties, is $600. The buyer's recording costs will be $35; the

seller's recording costs will be $19.

Hint: first calculate how the purchase price of $575,000 will be paid.There is a 1^stmortgage, a 2^ndmortgage and a down payment, of which the good faith deposit is a portion.

CoursHeroTranscribedText: otal entries 32. Possible score of 16 points - 1/2 point for each correct entry. point bonus for getting all TOTAL numbers correct. Note: Use 30/360 days Settlement Statement Buyer Seller Debits Credits Debits Credits urchase Price 575,000.00 575,000.00 Deposit 10,000.00 buyer's new bank loan 460,000.00 rigination fee 4,600.00 iscount points 5,200.00 4,000.00 ppraisal 400.00 redit report 45.00 Document preparation fee 200.00 repaid Interest on new loan eserve account for new loan 742.20 Homeowner's ins. premium (1st year) 330.00 eller Financing ayoff seller's first loan 398,571.47 rorated interest for seller's first loan teserve account for seller's first loan 251.50 ayoff of seller's home equity loan 13,425.35 rorated interest for seller's equity loan roperty taxes ales commission: listing broker ales commission: selling brokerProrated interest for seller's equity loan Property taxes Sales commission: listing broker Sales commission: selling broker Documentary transfer tax Owner's title insurance Lender's title insurance Pest inspection Escrow fee Recording fee Balance due from buyer Balance due to seller TOTAL 1,030.00 300.00 300.00 19.00 117,447.20 157,855.68 $515,251.50 these numbers must match these numbers must match $587,441.20 $581,447.20 W!) t l l B C D dE? these are amounts there are amounts these are amounts there are amounts 0 :1 mn on goes CO H s ' ' charged to buyer paid to buyer charged to seller paid to seller

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