Buyer’s Closing Costs- Prepaid Items Estimated

Buyer’s Closing Costs- Prepaid Items Estimated

This section gives an overview of how the prepaid items in the Buyer’s Closing Costs are calculated.

  • First Year Insurance (Homeowner/Hazard): This figure is not automatically calculated, however is important to other calculations.
  • Insurance Escrow Reserve / (x) Months: These values take the First Year Insurance values and divide them by the fraction of the year input as months (12/x).
  • Tax Reserve / (x) Months (Tax Paid $(y) for Year (z) est.): The tax paid for the year (y) divided by the fraction of the year (12/x).
  • Prepaid Interest For (x) Days (est.): These values are the result of a payment calculation based on Mortgage Loan Interest Rate, the number of days in consideration (x), and the sales price.
  • PMI/MIP (Mortgage Insurance) Fee: Filled using the percentages and the sales price, where the value is made by the percentage of the sales price.
  • PMI/MIP Escrow Reserve / (x) Months: Filled using the percentages and the sales price, where the value is made by the percentage of the sales price divided by the fraction of the year in consideration (12/x).
    • Related Articles

    • Buyer’s Closing Costs Calculator

      Estimate the settlement and escrow costs a purchaser will incur in purchasing a home at a specific sales price. This calculator allows you to perform an analysis of typical estimated closing costs, prepaid items, and monthly payments for different ...
    • Expired Estimated Closing Date

      The BLC Rules state that listing status updates must be completed within 2 business days. Please update the Estimated Closing Date or, if the listing has sold, update the listing status to Sold. 
    • Collaborative Closing-Buyer Agent Side

      The most common requests for listing changes after a closing are the Sold Price, Listing Address, Listing Status, and List Agent and Co-List Agent and Buyer Agent and Co-Buyer Agent information. By introducing a collaborative process of checks and ...
    • Reporting Sale for Buyer Representation Only

      Reporting Sales when One Party was a Non-Member Licensee. When a sale involves both a member and a non-member licensee, the member may only report him/herself for one side of the transaction. When reporting a closed transaction where the selling ...
    • Will we record what Buyer’s Agent Compensation (BAC) was paid, just as we do seller concessions currently?

      Will we record what Buyer’s Agent Compensation (BAC) was paid, just as we do seller concessions currently, so that appraisers can properly evaluate comparable sales (and agents can conduct appropriate research for CMAs)? We will not record the ...