Vincent and Sue Hemsley.
Mortgage loan of $95,000.
What is the total closing cost?

Foreclosure on Mortgages and Liens. LaSalle Bank loaned $\$ 8$ million to Cypress Creek $1$, LP, to build an apartment complex. The loan was secured by a mortgage. Cypress Creek hired contractors to provide concrete work, plumbing, carpentry, and other construction services. Cypress Creek later went bankrupt owing LaSalle $\$ 3$ million. The contractors recorded mechanic's liens when they were not paid for their work. The property was sold to LaSalle at a sheriff's sale for $\$ 1.3$ million. The contractors claimed that their mechanic's liens should be satisfied out of the $\$ 1.3$ million before any funds were distributed to LaSalle for its mortgage. The trial court distributed the $\$ 1.3$ million primarily to LaSalle, with only a small fraction going to the contractors. Do the liens come before the mortgage in priority of payment? Discuss.

Use the real estate amortization table to find the monthly payment for the loan.

The Sturgeons obtained a 30-year, $70,000 mortgage loan at First Federal Bank at an interest rate of 10.5%. Find the monthly payment. What is the new principal after the first monthly payment? Use the monthly payment table on page 645.

Fran Sullivan wants to buy a truck with a $25,955 base price, options totaling$3,246, and a destination charge of $710. If the dealer's cost is 90.5% of the base price and 87% of the options, what is the dealer's cost for the truck?

Ellen and Tim Hinojosa reached an agreed-upon price of $140,000 for the purchase of a house. They made a 10% down payment and had two options for financing the remaining amount: at 5.5% for 25 years or at 6% for 20 years. Which mortgage results in a higher amount of interest paid and by how much?

Considering the following pairs of choices for a $\$ 120,000$ mortgage loan. Calculate the monthly payment and total closing costs for below choice. Explain which loan you would choose and why. Choice 1: $30$-year fixed rate mortgage at $3.5 \%$ with closing costs of $\$ 1000$ and no points Choice 2: $30$-year fixed rate mortgage at $3 \%$ with closing costs of $\$ 1500$ and $4$ points

Find the (a) monthly payment, (b) total amount paid, and (c) total interest charged. Pierre Bolton has reached an agreed-upon selling price of $197,000 for a new home. He plans to make a 30% down payment and finance the rest at 6% for 20 years.

Find the (a) monthly payment, (b) total amount paid, and (c) total interest charged. Abigail and Curtis Siebert: $270,000 mortgage at 7% for 20 years.

71.4 $\times$ 10

Use the closing costs to calculate the (a) total closing costs and (b) total amount of the mortgage if the closing costs are financed. Vincent and Sue Helmsley buy a home with a mortgage loan of $120,000.$

$$\begin{array}{c}\\ \text{Closing Cost}\\ \begin{array}{|l|c|} \hline \text { Application Fee } & \$ 252 \\ \hline \text { Borrower's Credit Check } & 65 \\ \hline \text { Points } & 2.00 \% \text { of Mortgage } \\ \hline \text { Appraisal Fee } & \$ 325 \\ \hline \text { Title Search } & 212 \\ \hline \text { Title Insurance } & 410 \\ \hline \text { Inspection } & 350 \\ \hline \text { Attorney Fee } & 450 \\ \hline \text { Documentation Stamp } & 0.30 \% \text { of Mortgage } \\ \hline \text { Processing Fee } & 1.10 \% \text { of Mortgage } \\ \hline \end{array} \end{array}$$

$

Use the closing costs to calculate the (a) total closing costs and (b) total amount of the mortgage if the closing costs are financed. Jack and Dina King purchase a home with a mortgage loan of $420,000.$

$$\begin{array}{c}\\ \text{Closing Cost}\\ \begin{array}{|l|c|} \hline \text { Application Fee } & \$ 252 \\ \hline \text { Borrower's Credit Check } & 65 \\ \hline \text { Points } & 2.00 \% \text { of Mortgage } \\ \hline \text { Appraisal Fee } & \$ 325 \\ \hline \text { Title Search } & 212 \\ \hline \text { Title Insurance } & 410 \\ \hline \text { Inspection } & 350 \\ \hline \text { Attorney Fee } & 450 \\ \hline \text { Documentation Stamp } & 0.30 \% \text { of Mortgage } \\ \hline \text { Processing Fee } & 1.10 \% \text { of Mortgage } \\ \hline \end{array} \end{array}$$

$

$$\begin{array}{c} \small \textbf{ANNUAL PREMIUMS FOR A TYPICAL HOMEOWNER'S POLICY} \end{array}$$

$$\begin{array}{c c c} \small \text{Amount of Insurance} \hspace{25pt}& \small \text{Brick/Masonry Veneer} \hspace{70pt}& \small \text{Wood Frame}\hspace{150pt}\\ \small \text{Coverage}\hspace{25pt} & \small \text{Fire Protection Class} \hspace{70pt}& \small \text{Fire Protection Class}\hspace{150pt}\\ \end{array}$$

$$\begin{array}{|r| c c c c c| c c c c c c c|}\hline & 1-6 & 7-8 & 9 & 10 & 11 & 1-6 & 7-8 & 9 & 10 & 11 \\ \hline \$ ~~~40,000 & \$~~128 & \$~~131 & \$~~173 & \$~~182 & \$~~208 & \$~~137 & \$~~ 141 & \$~~ 182 & \$~~191 & \$~~219\\ 45,000 & ~~~~133 & ~~~~137 & ~~~~173 & ~~~~182 & ~~~~208 & ~~~144 & ~~~~147 & ~~~~191 & ~~~~200 & ~~~~229\\ 50,000 & ~~~~137 & ~~~~141 & ~~~~185 & ~~~~195 & ~~~~223 & ~~~~146 & ~~~~150 & ~~~~195 & ~~~~204 & ~~~~234 \\ 60,000 & ~~~~147 & ~~~~151 & ~~~~199 & ~~~~210 & ~~~~241 & ~~~~158 & ~~~~162 & ~~~~210 & ~~~~221 & ~~~~252\\ 70,000 & ~~~~164 & ~~~~166 & ~~~~219 & ~~~~230 & ~~~~264 & ~~~~173 & ~~~~178 & ~~~~230 & ~~~~242 & ~~~~277 \\ 80,000 & ~~~~185 & ~~~~191 & ~~~~252 & ~~~~264 & ~~~~303 & ~~~~198 & ~~~~204 & ~~~~264 & ~~~~279 & ~~~~319\\ 90,000 & ~~~~206 & ~~~~212 & ~~~~281 & ~~~~295 & ~~~~339 & ~~~~222 & ~~~~228 & ~~~~295 & ~~~~310 & ~~~~357 \\ 100,000 & ~~~~229 & ~~~~236 & ~~~~313 & ~~~~328 & ~~~~377 & ~~~~246 & ~~~~253 & ~~~~328 & ~~~~345 & ~~~~396\\ 120,000 & ~~~~272 & ~~~~280 & ~~~~372 & ~~~~391 & ~~~~449 & ~~~~293 & ~~~~301 & ~~~~391 & ~~~~411 & ~~~~472 \\ 150,000 & ~~~~353 & ~~~~362 & ~~~~481 & ~~~~505 & ~~~~581 & ~~~~379 & ~~~~389 & ~~~~505 & ~~~~532 & ~~~~611\\ 200,000 & ~~~~474 & ~~~~487 & ~~~~647 & ~~~~680 & ~~~~782 & ~~~~509 & ~~~~523 & ~~~~680 & ~~~~716 & ~~~~823 \\ 250,000 & ~~~~567 & ~~~~580 & ~~~~739 & ~~~~785 & ~~~~898 & ~~~~600 & ~~~~614 & ~~~~785 & ~~~~835 & ~~~~956 \\ 300,000 & ~~~~676 & ~~~~693 & ~~~~882 & ~~~~937 & ~~1072 & ~~~~716 & ~~~~733 & ~~~~937 & ~~~~996 & ~~1141\\ 400,000 & ~~~~785 & ~~~~804 & ~~1024 & ~~1087 & ~~1244 & ~~~~831 & ~~~~850 & ~~1087 & ~~1157 & ~~1325\\ 500,000 & ~~1007 & ~~1031 & ~~1313 & ~~1394 & ~~1595 & ~~1065 & ~~1091 & ~~1394 & ~~1484 & ~~1699\\ \hline \end{array}$$

Use the table to find the annual premium.

The Smiths own a wood-frame home in an area rated fire protection class 1. Their two-family home has a replacement value of $112,500 and is insured for 80%. What is their annual premium?

The Quicks own a brick home that has a replacement value of $375,000. They purchased a homeowners policy for 80% of its replacement value. They live in an area rated fire protection class 9. (a) What is the annual policy premium? (b) What would the annual policy premium be if they were in class 11?