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Buyer’s Cost

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Estimated Purchaser Cost Form

When to use the form: 1.  before showing property; 2.  at the time of an offer and/or counteroffer; and, 3.  prior to the closing.

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Estimated Purchaser Cost Form

Due Date of Purchaser's First Payment If the closing is on the 1st of the month, the next payment will be due on

the 1st of the following month.

Closing August 1st First Payment September 1st

EXAMPLE

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Estimated Purchaser Cost Form

Due Date of Purchaser's First Payment If the closing is on any day other than the 1st of the month, skip a

month.

Closing September 15th

First Payment November 1st

EXAMPLE

October 1st

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Estimated Purchaser Cost Form

Calculating the Interest Adjustment When calculating interest use a 360 day year unless instructed

otherwise.

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Estimated Purchaser Cost Form

Calculating the Interest Adjustment

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Estimated Purchaser Cost Form

Calculating the Interest Adjustment

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Estimated Purchaser Cost Form Calculating the Interest Adjustment

Formula

Loan Amt. x Int. Rate = Annual Int.

Annual Int. ÷ by 360 = Daily Rate

Daily Rate x # of Days Owed = % Adj.

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Estimated Purchaser Cost Form Calculating the Interest Adjustment

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Estimated Purchaser Cost Form Calculating the Interest Adjustment

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Estimated Purchaser Cost Form Calculating the Transfer Tax

Sales Price (- Loan Assumed, in any) ÷ 100 = Taxable Amount Round Taxable Amount up to the nearest whole dollar

Rounded Taxable Amount x $0.10 = Transfer Tax

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Estimated Purchaser Cost Form Calculating the Transfer Tax

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Estimated Purchaser Cost Form Calculating the Transfer Tax

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Estimated Purchaser Cost Form Calculating the Intangibles Tax

New Loan Amount ÷ 500 = Taxable Amount

Round Taxable Amount up to the nearest whole dollar

Rounded Taxable Amount x $1.50 = Intangibles Tax

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Estimated Purchaser Cost Form Calculating the Intangibles Tax

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Estimated Purchaser Cost Form

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Estimated Purchaser Cost Form Calculating Private Mortgage Insurance

Paid on conventional loans with greater than an 80% LTV

Loan Amount x Rate = Annual PMI If indicated, round Annual PMI down.

Annual PMI ÷ 12 = Monthly PMI

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Estimated Purchaser Cost Form

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Estimated Purchaser Cost Form

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Estimated Purchaser Cost Form Calculating Mortgage Insurance Premium

Paid on all FHA Loans in 2 parts

Loan Amount x Rate = UFMIP Added to the loan and financed

Loan Amount x Rate = Annual MIP

Annual MIP ÷ 12 = Monthly MIP

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Estimated Purchaser Cost Form

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Estimated Purchaser Cost Form

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Estimated Purchaser Cost Form Calculating Property Tax Escrow

Note: For testing purposes the number of months to be escrowed will be given.

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Monthly Payment Needed to Amortize a Loan of $1000

Interest Rate 15 Years 20 Years 25 Years 30 Years

6.00% 7.17 6.45 6.00

7.00% 8.99 7.76 7.07 6.66

8.00% 9.56 8.37 7.72 7.34

9.00% 10.15 9.00 8.4 8.05

10.00% 10.75 9.66 9.09 8.78

11.00% 11.37 10.33 9.81 9.53

12.00% 12.01 11.02 10.54 10.29

13.00% 12.66 11.72 11.28 11.07

Example: $45,800 Loan – 10% for 30 Years = Monthly Payment Solution: 45.8 x 8.78 = $402.12 Monthly Payment

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Estimated Purchaser Cost Form Calculating Principle and Interest

The factor represents the amount paid per month on a loan of $1,000.

Divide the loan amount by 1000

Multiply by the indicated factor = Principle and Interest

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Estimated Purchaser Cost Form Estimated Monthly Payment

Principle and Interest + 1/12 Annual Property Tax

+ 1/12 of Annual Homeowners Insurance + Mortgage Insurance

+ Other

Total Monthly Payment

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ESTIMATE OF COST TO BUYER Seller _________________________________ Date Prepared _________________________ Address _______________________________ Projected Closing Date __________________ Purchase Price $ _______________________ Loan Amount $ _________________________ Loan Type ________________________ Interest Rate _______(%) Term (Years) ________ Financing Costs

1.  Down Payment $ _________________

2.  Closing Costs + $ _________________

3.  Loan Discount (Points) + $ _________________

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ESTIMATE OF COST TO BUYER Seller ________ Karlie Sinclair ____________ Date Prepared _____ March 10, 20xx _____ Address ________ 1220 Willow Way _______ Projected Closing Date __ April 15, 20xx __ Purchase Price $ __ 90,000.00 ____________ Loan Amount $ __ 81,000.00 ____________ Loan Type __ 90% Conventional ____ Interest Rate _ 6.00 _(%) Term (Years) __ 30 ___ Financing Costs

1.  Down Payment $ _________________

2.  Closing Costs + $ _________________

3.  Loan Discount (Points) + $ _________________

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ESTIMATE OF COST TO BUYER Seller ________ Karlie Sinclair ____________ Date Prepared _____ March 10, 20xx _____ Address ________ 1220 Willow Way _______ Projected Closing Date __ April 15, 20xx __ Purchase Price $ __ 90,000.00 ____________ Loan Amount $ __ 81,000.00 ____________ Loan Type __ 90% Conventional ____ Interest Rate _ 6.00 _(%) Term (Years) __ 30 ___ Financing Costs

1.  Down Payment $ __ 9,000.00 ______ 2.  Closing Costs + $

_________________ 3.  Loan Discount (Points) + $

_________________

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ESTIMATE OF COST TO BUYER Seller ________ Karlie Sinclair ____________ Date Prepared _____ March 10, 20xx _____ Address ________ 1220 Willow Way _______ Projected Closing Date __ April 15, 20xx __ Purchase Price $ __ 90,000.00 ____________ Loan Amount $ __ 81,000.00 ____________ Loan Type __ 90% Conventional ____ Interest Rate _ 6.00 _(%) Term (Years) __ 30 ___ Financing Costs

1.  Down Payment $ __ 9,000.00 ______ 2.  Closing Costs + $ __ 1,230.00 ______ 3.  Loan Discount (Points) + $ __ N/A

___________

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ESTIMATE OF COST TO BUYER Escrow Establishment Charges

4.  Taxes (_ 13 _ months @ $_ 87.50 _/month) $ __ 1,137.50 ______ 5.  Homeowner’s Insurance + $

_________________ 6.  Mortgage Insurance + $

_________________ 7.  Prepaid Interest (______ days @ $______/day) + $

_________________

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ESTIMATE OF COST TO BUYER Escrow Establishment Charges

4.  Taxes (_ 13 _ months @ $_ 87.50 _/month) $ __ 1,137.50 ______ 5.  Homeowner’s Insurance + $ ____ 141.25

______ 6.  Mortgage Insurance + $

_________________ 7.  Prepaid Interest (______ days @ $______/day) + $

_________________

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ESTIMATE OF COST TO BUYER Escrow Establishment Charges

4.  Taxes (_ 13 _ months @ $_ 87.50 _/month) $ __ 1,137.50 ______ 5.  Homeowner’s Insurance + $ ____ 141.25

______ 6.  Mortgage Insurance + $ ____ 129.60

______ 7.  Prepaid Interest (______ days @ $______/day) + $

_________________

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ESTIMATE OF COST TO BUYER Escrow Establishment Charges

4.  Taxes (_ 13 _ months @ $_ 87.50 _/month) $ __ 1,137.50 ______ 5.  Homeowner’s Insurance + $ ____ 141.25

______ 6.  Mortgage Insurance + $ ____ 129.60

______ 7.  Prepaid Interest (_ 16 _ days @ $_ 13.50_/day) + $ ____ 216.00

______

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ESTIMATE OF COST TO BUYER Miscellaneous Charges

8.  Homeowner’s Insurance (First Year’s Premium) $ _____ 565.00 _____

9.  Loan Transfer Fee + $ _________________

10.  Purchase of Seller’s Escrow Account + $ _________________

11.  Proration of Property Taxes (County and City) + $ _________________

12.  Georgia Transfer Tax + $ _________________

13.  Other ____________________________________ + $ _________________

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ESTIMATE OF COST TO BUYER Miscellaneous Charges

8.  Homeowner’s Insurance (First Year’s Premium) $ _____ 565.00 _____

9.  Loan Transfer Fee + $ __ N/A ___________

10.  Purchase of Seller’s Escrow Account + $ __ N/A ___________

11.  Proration of Property Taxes (County and City) + $ __ N/A ___________

12.  Georgia Transfer Tax + $ _________________

13.  Other ____________________________________ + $ _________________

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ESTIMATE OF COST TO BUYER Miscellaneous Charges

8.  Homeowner’s Insurance (First Year’s Premium) $ _____ 565.00 _____

9.  Loan Transfer Fee + $ __ N/A ___________

10.  Purchase of Seller’s Escrow Account + $ __ N/A ___________

11.  Proration of Property Taxes (County and City) + $ __ N/A ___________

12.  Georgia Transfer Tax + $ ______ 90.00 _____

13.  Other ____________________________________ + $ __ N/A ___________

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ESTIMATE OF COST TO BUYER Credits

14.  Proration of Property Taxes (County and City) $ _____ 302.05 _____

15.  Earnest Money Deposit + $ _________________

16.  Other ____________________________________ + $ _________________

17.  TOTAL ESTIMATE OF COST TO BUYER + $ _________________

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ESTIMATE OF COST TO BUYER Credits

14.  Proration of Property Taxes (County and City) $ _____ 302.05 _____

15.  Earnest Money Deposit + $ ___ 2,000.00 _____ 16.  Other ____________________________________ + $

_________________ 17.  TOTAL ESTIMATE OF COST TO BUYER + $

_________________

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ESTIMATE OF COST TO BUYER Credits

14.  Proration of Property Taxes (County and City) $ _____ 302.05 _____

15.  Earnest Money Deposit + $ ___ 2,000.00 _____ 16.  Other ____________________________________ + $ __ N/A

___________ 17.  TOTAL ESTIMATE OF COST TO BUYER + $ __ 10,207.30 _____

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ESTIMATE OF COST TO BUYER Estimated Monthly Payment

A.  Principal and Interest $ _____ 486.00 _____

B.  Homeowner’s Insurance + $ _________________

C.  Mortgage Insurance + $ _________________

D.  Property Taxes + $ _________________

E.  Other + $ _________________

F.  Other + $ _________________

G.  TOTAL + $ _________________

Projected Due Date of First Payment ___________________________________________

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ESTIMATE OF COST TO BUYER Estimated Monthly Payment

A.  Principal and Interest $ _____ 486.00 _____

B.  Homeowner’s Insurance + $ ______ 47.08 _____

C.  Mortgage Insurance + $ _________________

D.  Property Taxes + $ _________________

E.  Other + $ _________________

F.  Other + $ _________________

G.  TOTAL + $ _________________

Projected Due Date of First Payment ___________________________________________

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ESTIMATE OF COST TO BUYER Estimated Monthly Payment

A.  Principal and Interest $ _____ 486.00 _____

B.  Homeowner’s Insurance + $ ______ 47.08 _____

C.  Mortgage Insurance + $ ______ 43.20 _____

D.  Property Taxes + $ _________________

E.  Other + $ _________________

F.  Other + $ _________________

G.  TOTAL + $ _________________

Projected Due Date of First Payment ___________________________________________

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ESTIMATE OF COST TO BUYER Estimated Monthly Payment

A.  Principal and Interest $ _____ 486.00 _____

B.  Homeowner’s Insurance + $ ______ 47.08 _____

C.  Mortgage Insurance + $ ______ 43.20 _____

D.  Property Taxes + $ ______ 87.50 _____

E.  Other + $ _________________

F.  Other + $ _________________

G.  TOTAL + $ _________________

Projected Due Date of First Payment ___________________________________________

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ESTIMATE OF COST TO BUYER Estimated Monthly Payment

A.  Principal and Interest $ _____ 486.00 _____

B.  Homeowner’s Insurance + $ ______ 47.08 _____

C.  Mortgage Insurance + $ ______ 43.20 _____

D.  Property Taxes + $ ______ 87.50 _____

E.  Other + $ __ N/A ___________

F.  Other + $ __ N/A ___________

G.  TOTAL + $ _____ 663.78 _____

Projected Due Date of First Payment ___________________________________________

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ESTIMATE OF COST TO BUYER Estimated Monthly Payment

A.  Principal and Interest $ _____ 486.00 _____

B.  Homeowner’s Insurance + $ ______ 47.08 _____

C.  Mortgage Insurance + $ ______ 43.20 _____

D.  Property Taxes + $ ______ 87.50 _____

E.  Other + $ __ N/A ___________

F.  Other + $ __ N/A ___________

G.  TOTAL + $ _____ 663.78 _____

Projected Due Date of First Payment _____ June 1, 20xx _________________________