Escrow & Title
A North Dakota closing uses a HUD-1 Settlement Statement for a federally related mortgage loan. This form shows:
AOnly the purchase price
BAll costs and credits for both buyer and seller✓ Correct
COnly the lender's costs
DOnly the buyer's costs
Explanation
The HUD-1 Settlement Statement (or Closing Disclosure under TRID for transactions after October 2015) itemizes all closing costs, credits, prorations, and net amounts due from or to both the buyer and seller in a federally related mortgage transaction.
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Key Terms to Know
Closing Costs
Fees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
ProrationThe division of ongoing property expenses (taxes, HOA dues, rents) between buyer and seller at closing based on their respective days of ownership.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Math Concepts
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