22 YOUR HOME LOAN TOOLKIT
Page 22
Calculating Cash to Close
BORROWER’S TRANSACTION
K. Due from Borrower at Closing $189,762.30
01 Sale Price of Property $180,000.00
02 Sale Price of Any Personal Property Included in Sale
03 Closing Costs Paid at Closing (J) $9,682.30
04
Adjustments
05
06
07
Adjustments for Items Paid by Seller in Advance
08 City/Town Taxes to
09 County Taxes to
10 Assessments to
11 HOA Dues 4/15/13 to 4/30/13 $80.00
12
13
14
15
L. Paid Already by or on Behalf of Borrower at Closing $175,615.04
01 Deposit $10,000.00
02 Loan Amount $162,000.00
03 Existing Loan(s) Assumed or Taken Subject to
04
05 Seller Credit $2,500.00
Other Credits
06 Rebate from Epsilon Title Co. $750.00
07
Adjustments
08
09
10
11
Adjustments for Items Unpaid by Seller
12 City/Town Taxes 1/1/13 to 4/14/13 $365.04
13 County Taxes to
14 Assessments to
15
16
17
CALCULATION
Total Due from Borrower at Closing (K) $189,762.30
Total Paid Already by or on Behalf of Borrower at Closing (L) – $175,615.04
Cash to Close
x
From
To Borrower $14,147.26
SELLER’S TRANSACTION
M. Due to Seller at Closing $180,080.00
01 Sale Price of Property $180,000.00
02 Sale Price of Any Personal Property Included in Sale
03
04
05
06
07
08
Adjustments for Items Paid by Seller in Advance
09 City/Town Taxes to
10 County Taxes to
11 Assessments to
12 HOA Dues 4/15/13 to 4/30/13 $80.00
13
14
15
16
N. Due from Seller at Closing $115,665.04
01 Excess Deposit
02 Closing Costs Paid at Closing (J) $12,800.00
03 Existing Loan(s) Assumed or Taken Subject to
04 Payo of First Mortgage Loan $100,000.00
05 Payo of Second Mortgage Loan
06
07
08 Seller Credit $2,500.00
09
10
11
12
13
Adjustments for Items Unpaid by Seller
14 City/Town Taxes 1/1/13 to 4/14/13 $365.04
15 County Taxes to
16 Assessments to
17
18
19
CALCULATION
Total Due to Seller at Closing (M) $180,080.00
Total Due from Seller at Closing (N) – $115,665.04
Cash From
x
To Seller $64,414.96
Summaries of Transactions
CLOSING DISCLOSURE PAGE 3 OF 5 • LOAN ID # 123456789
Loan Estimate Final Did this change?
Total Closing Costs (J) $8,054.00 $9,712.10 YES • See Total Loan Costs (D) and Total Other Costs (I)
Closing Costs Paid Before Closing $0 $29.80 YES • You paid these Closing Costs before closing
Closing Costs Financed
(Paid from your Loan Amount) $0 $0 NO
Down Payment/Funds from Borrower $18,000.00 $18,000.00 NO
Deposit – $10,000.00 – $10,000.00 NO
Funds for Borrower $0 $0 NO
Seller Credits $0 $2,500.00 YES • See Seller Credits in Section L
Adjustments and Other Credits $0 $1,035.04 YES • See details in Sections K and L
Cash to Close $16,054.00 $14,147.26
Use this table to see a summary of your transaction.
Use this table to see what has changed from your Loan Estimate.
ON PAGE 3 OF 5
Calculating Cash to Close
Closing costs are only a part
of the total cash you need to
bring to closing.
Summaries of Transactions
The section at the bottom of
the page sums up how the
money ows among you, the
lender, and the seller.
ON PAGE 4 OF 5
Loan Disclosures
Page 4 breaks down what is and
is not included in your escrow
or impound account. Make sure
you understand what is paid
from your escrow account and
what you are responsible for
paying yourself.
Assumption
If you sell or transfer this property to another person, your lender
will allow, under certain conditions, this person to assume this
loan on the original terms.
will not allow assumption of this loan on the original terms.
Demand Feature
Your loan
has a demand feature, which permits your lender to require early
repayment of the loan. You should review your note for details.
does not have a demand feature.
Late Payment
If your payment is more than 15 days late, your lender will charge a
late fee of 5% of the monthly principal and interest payment.
Negative Amortization (Increase in Loan Amount)
Under your loan terms, you
are scheduled to make monthly payments that do not pay all of
the interest due that month. As a result, your loan amount will
increase (negatively amortize), and your loan amount will likely
become larger than your original loan amount. Increases in your
loan amount lower the equity you have in this property.
may have monthly payments that do not pay all of the interest
due that month. If you do, your loan amount will increase
(negatively amortize), and, as a result, your loan amount may
become larger than your original loan amount. Increases in your
loan amount lower the equity you have in this property.
do not have a negative amortization feature.
Partial Payments
Your lender
may accept payments that are less than the full amount due
(partial payments) and apply them to your loan.
may hold them in a separate account until you pay the rest of the
payment, and then apply the full payment to your loan.
does not accept any partial payments.
If this loan is sold, your new lender may have a dierent policy.
Security Interest
You are granting a security interest in
456 Somewhere Ave., Anytown, ST 12345
You may lose this property if you do not make your payments or
satisfy other obligations for this loan.
CLOSING DISCLOSURE PAGE 4 OF 5 • LOAN ID # 1234567890
Loan Disclosures
Escrow Account
For now, your loan
will have an escrow account (also called an “impound” or “trust”
account) to pay the property costs listed below. Without an escrow
account, you would pay them directly, possibly in one or two large
payments a year. Your lender may be liable for penalties and interest
for failing to make a payment.
Escrow
Escrowed
Property Costs
over Year 1
$2,473.56 Estimated total amount over year 1 for
your escrowed property costs:
Homeowner’s Insurance
Property Taxes
Non-Escrowed
Property Costs
over Year 1
$1,800.00 Estimated total amount over year 1 for
your non-escrowed property costs:
Homeowner’s Association Dues
You may have other property costs.
Initial Escrow
Payment
$412.25 A cushion for the escrow account you
pay at closing. See Section G on page 2.
Monthly Escrow
Payment
$206.13 The amount included in your total
monthly payment.
No Escrow
Estimated
Property Costs
over Year 1
Estimated total amount over year 1. You
must pay these costs directly, possibly
in one or two large payments a year.
Escrow Waiver Fee
will not have an escrow account because you declined it your
lender does not oer one. You must directly pay your property
costs, such as taxes and homeowner’s insurance. Contact your
lender to ask if your loan can have an escrow account.
In the future,
Your property costs may change and, as a result, your escrow pay-
ment may change. You may be able to cancel your escrow account,
but if you do, you must pay your property costs directly. If you fail
to pay your property taxes, your state or local government may (1)
impose nes and penalties or (2) place a tax lien on this property. If
you fail to pay any of your property costs, your lender may (1) add
the amounts to your loan balance, (2) add an escrow account to your
loan, or (3) require you to pay for property insurance that the lender
buys on your behalf, which likely would cost more and provide fewer
benets than what you could buy on your own.
Additional Information About This Loan
x
x
x
x
x
Top image: A summary
of important nancial
information appears on page
3 of the Closing Disclosure.
Bottom image: More details
of your loan appear on page 4
of your Closing Disclosure.