Real Estate Math Demystified by Steven P. Mooney

Author:Steven P. Mooney [Mooney, Steven P.]
Language: eng
Format: epub, pdf
Tags: Mathematics, Finance, Business & Economics, Real estate business - Mathematics, Real Estate, Real estate business
ISBN: 9780071481380
Publisher: McGraw-Hill Professional
Published: 2007-05-17T03:31:08.324000+00:00

CHAPTER 9 Closing and Closing Statements

141

Origination fee:

$90,000 × 0.01 = $900

Mortgage registration tax:

$90,000 ÷ 1,000 = 90 × $2.30 = $207

Amount due from buyer:

$125,742 − $93,350 = $32,392

As stated previously, the seller’s closing statement will inform the seller of the net proceeds to expect as a result of the sale. In Table 9.4 that figure is represented by the amount due to the seller.

CALCULATIONS

Interest:

$45,000 × .10 = $4,500 ÷ 12 = $375 ÷ 30 = $12.50 × 15 = $187.50

Twelve days of interest at $12.50 per day. Real estate taxes: The same amount that is a credit to the buyer is a debit to the seller. See the calculation under the buyer’s statement.

Table 9.4

Seller’s closing statement

Debit

Credit

Sale price

$123,000

Mortgage

– Principal

$45,000.00

– Interest 9/1 − 9/15

$187.50

Real estate taxes

$350.00

Insurance

Recording

$15.00

Commission

$7,380.00

State deed tax

$405.90

Subtotals

$53,338.40

$123,000

Amount due seller

$69,661.60

Totals

$123,000.00

$123,000

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