1 1
2 2
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.
3 3
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
4 4
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
5 5
Estimated Purchaser Cost Form
Calculating the Interest Adjustment
When calculating interest use a 360 day year unless instructed
6 6
Estimated Purchaser Cost Form
7 7
Estimated Purchaser Cost Form
8 8
Estimated Purchaser Cost Form
Calculating the Interest Adjustment
Formula
Loan Amt.
x
Int. Rate
=
Annual Int.
Annual Int.
÷
by 360
=
Daily Rate
9 9
10 10
Estimated Purchaser Cost Form
11 11
Estimated Purchaser Cost Form
12 12
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
13 13
Estimated Purchaser Cost Form
Calculating the Transfer Tax
14 14
Estimated Purchaser Cost Form
Calculating the Transfer Tax
15 15
Estimated Purchaser Cost Form
Calculating the Intangibles Tax
New Loan Amount
÷
500
=
Taxable Amount
Round Taxable Amount up to the nearest whole dollar
16 16
Estimated Purchaser Cost Form
Calculating the Intangibles Tax
17 17
18 18
19 19
20 20
21 21
Estimated Purchaser Cost Form
22 22
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.
23 23
24 24
25 25
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
26 26
27 27
28 28
Estimated Purchaser Cost Form
Calculating Property Tax Escrow
29 29
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
30 30
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 =
31 31
Estimated Purchaser Cost Form
Estimated Monthly Payment
Principle and Interest
+ 1
/
12 Annual Property Tax
+ 1
/
12 of Annual Homeowners Insurance
+ Mortgage Insurance
+ Other
32 32
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) + $
33 33
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) + $
34 34
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) + $
35 35
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
36 36
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) + $ _________________
37 37
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) + $ _________________
38 38
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) + $ _________________
39 39
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
40 40
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 ____________________________________ + $ _________________
41 41
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 ____________________________________ + $ _________________
42 42
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
43 43
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 + $ _________________
44 44
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 + $ _________________
45 45
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
___________
46 46
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
47 47
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
48 48
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
49 49
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
50 50
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
51 51
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
