A seller in Ohio sells their property for $350,000. The seller has an existing mortgage balance of $220,000, pays a 6% total commission, and pays the state and maximum county conveyance fee ($1.30 per $1,000). What are the seller's approximate net proceeds before other closing costs?
Correct Answer
A) $108,545
Commission: $350,000 × 6% = $21,000. Conveyance fee: $350,000 ÷ $1,000 × $1.30 = $455. Deductions total: $220,000 + $21,000 + $455 = $241,455. Net proceeds: $350,000 − $241,455 = $108,545.
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Related Concepts
The debt-to-income ratio (DTI) compares a borrower's monthly debt obligations to their gross monthly income. It is used by lenders to determine how much mortgage a borrower can afford.
In the context of foreclosure, a deed transfers ownership of the foreclosed property to the new owner, typically the buyer at a foreclosure sale.
Discount points are upfront fees paid to a lender at closing to reduce (buy down) the interest rate on a mortgage loan. One point equals 1% of the loan amount and typically reduces the rate by approximately 0.25%.
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In Ohio, after the deed is recorded, the county recorder assigns the document a recording reference number. This number is important because it:
In Ohio, the conveyance fee is paid at the time of:
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- → In Ohio, the conveyance fee statement (DTE 100 form) must be filed with the county auditor when transferring real property. This form requires disclosure of:
- → In Ohio, the real estate closing process is commonly referred to as:
- → In many Ohio counties, closings are conducted by title companies or attorneys. Which statement about attorney involvement in Ohio closings is MOST accurate?
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Previous Question
An Ohio property closes on April 11. The seller has a mortgage with a balance of $180,000 at 5% annual interest. Interest is paid in arrears, and the seller's last payment covered interest through March 31. Using a 360-day banker's year and charging the seller for the day of closing, how much accrued interest must the seller pay off at closing?
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An Ohio buyer obtains an FHA loan requiring a 3.5% down payment on a $200,000 purchase. What is the minimum down payment required?