Loans, Mortgage documentation

[Jon Lapham]

Dave Reed wrote:
> I'm not certain what you mean by "how are closing costs calculated?".

I guess I meant, is it a raw number, of a % of the overall cost...

> In the US, you receive a HUD-1 form that breaks down the various
> closing costs (such as appraisal fee, credit report, title insurance,
> etc.). For a personal residence, you really don't need to worry about
> the breakdown so your example is fine. 

...okay, that answers my question.  It certainly isn't a simple 
percentage of the house value.

> The only change I would make is
> I would just have one line that lists Liabilities: Mortgage $103,000
> instead of one line of $100,000 and one line of $3,000.

Okay, done.

> 
> For investment real estate, you do need to break the closing costs
> down. Some of them can be expensed immediately and others need to be
> depreciated over the life of the loan.

Okay.  That would be a good candidate for some future "advanced 
examples" section.

-- 
-**-*-*---*-*---*-*---*-----*-*-----*---*-*---*-----*-----*-*-----*---
  Jon Lapham  <lapham at extracta.com.br>          Rio de Janeiro, Brasil
  Work: Extracta Moléculas Naturais SA     http://www.extracta.com.br/
  Web: http://www.jandr.org/
***-*--*----*-------*------------*--------------------*---------------