Question

Alice is closing on a house on Aug 13t the buyer owens the property on the day of the closing. the selling price of the home is 350,700. Alice was accepted for a 20 year fixed-rate mortage for 324900 at 5.25% interest. the seller has paid 4478.51. In property taxes for the coming year. How much will Alice owe in prorated taxes and interest?

Answer 1

Interest portion

Amount of interest for the year$=\$324,900\times5.25\%=\$17,057.25$

Alice portion till August 13$=\$17,057.25\times\frac{225}{365}=\$10,514.74$

Seller portion from August 13$=\$17,057.25\times\frac{140}{365}=\$6,542.51$

Tax portion

Alice portion till August 13$=\$4,478.51\times \frac{225}{365}=\$2,760.73$

Seller portion from August 13$=\$4,478.51\times\frac{140}{365}=\$1,717.78$

Total Alice share$=\$10,514.74+\$2,760.73=\$13,275.47$