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 <[EMAIL PROTECTED]> Rio de Janeiro, Brasil Work: Extracta Moléculas Naturais SA http://www.extracta.com.br/ Web: http://www.jandr.org/ ***-*--*----*-------*------------*--------------------*---------------
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