Research in Development of Disclosure Forms

This form is a statement of final loan terms and closing costs. Compare this
document with your Loan Estimate.

Closing Disclosure
Closing Information

Transaction Information

Date Issued
12/03/2012
Closing Date 12/06/2012
Disbursement Date 12/06/2012
Agent
Epsilon Title Co.
File #
12-3456
Property
456 Somewhere Avenue
Anytown, AZ 12345
Sale Price
$240,000

Borrower

Seller

Lender

Loan Terms

Loan Information

John A. and Mary B.
123 Anywhere Street
Anytown, AZ 12345
Steve C. and Amy D.
123 Somewhere Drive
Anytown, AZ 12345
Ficus Bank

Loan Term
Purpose
Product
Loan Type
Loan ID #
MIC #

30 years
Purchase
5 Year Interest Only,
5/3 Adjustable Rate
x Conventional
FHA
VA
_____________
123456789
000654321

Can this amount increase after closing?

Loan Amount

$216,500

NO

Interest Rate

4.375%

YES • Adjusts every three years starting in year 6

Monthly Principal & Interest

$789.32

YES • Adjusts every three years starting in year 6

See Projected Payments Below
for Your Total Monthly Payment

• Can go as high as 8% in year 9
• See AIR table on page 4 for details

• Can go as high as $1,664 in year 9
• Includes only interest and no principal until year 6
• See AP table on page 4 for details

Does the loan have these features?
Prepayment Penalty

NO

Balloon Payment

NO

Projected Payments
Payment Calculation

Years 6-8

Years 9-11

Years 12-30

only interest

$1,266 min
$1,582 max

$1,266 min
$1,664 max

$1,266 min
$1,664 max

Mortgage Insurance

+ 164.18

+ 164.18

+ 164.18

+ —

Estimated Escrow

+ 699.50

+ 699.50

+ 699.50

+ 699.50

Principal & Interest

Amount Can Increase Over Time

Estimated Total
Monthly Payment
Estimated Taxes, Insurance
& Assessments
Amount Can Increase Over Time
See Details on Page 4

Years 1-5
$789.32

$1,653.00
$842.09
a month

$2,130 – $2,446 $2,130 – $2,528 $1,966 – $2,364
This estimate includes
x Property Taxes
x Homeowner’s Insurance
x Other: HOA

In escrow?
YES
YES
NO

See page 4 for escrowed property costs. You must pay for other property
costs separately.

Cash to Close
Cash to Close

CLOSING DISCLOSURE

$29,826.23

Includes $13,533.29 in Closing Costs ($4,818.00 in Loan Costs +
$8,715.29 in Other Costs). See details on page 2.

PAGE 1 OF 5 • LOAN ID # 1330172608

Closing Cost Details
Loan Costs
A. Origination Charges
01
% of Loan Amount (Points)
02 Broker Fee
to Friendly Mortgage Broker, Inc. by Lender
03 Desk Review Fee
04 Loan Origination Fee
05 Processing Fee
06 Rate Lock Fee
07 Underwriting Fee
08 Verification Fee
B. Services Borrower Did Not Shop For
01 Appraisal Fee
to Local Appraisal Co.
02 Credit Report Fee
to Credit Co.
03 Document Preparation Fee
to Collateral Research Inc.
04 Flood Determination Fee
to Collateral Research Inc.
05 Flood Monitoring Fee
to Monitoring Services Inc.
06 Lender’s Attorney
to The Firm LLP
07 Tax Monitoring Fee
to Monitoring Services Inc.
08 Tax Status Research Fee
to Collateral Research Inc.
09
10
C. Services Borrower Did Shop For
to Home Pest Co.
01 Pest Inspection Fee
02 Survey Fee
to ABC Surveys Co.
03 Title Guaranty Fee
to Title Ins. Guar. Assn. by Lender
04 Title – Courier Fee
to Quick Delivery Co.
05 Title – Lender’s Policy
to Regional Title Co.
06 Title – Settlement Agent Fee
to ABC Settlement Co.
07 Title – Title Search
to Regional Title Co.
08
D. TOTAL LOAN COSTS (Borrower-Paid)
Loan Costs Subtotals (A + B + C)

Borrower-Paid
At Closing
Before Closing

Seller-Paid
At Closing
Before Closing

Paid by
Others

$2,850.00
$4,330.00
$150.00
$1,000.00
$300.00

$525.00

$800.00
$75.00
$900.00
$305.00
$30.00
$55.00
$35.00
$10.00
$425.00
$15.00
$25.00

$1,068.00
$125.00
$160.00
$1.00
$32.00
$100.00
$425.00
$225.00

$1.00

$4,818.00
$3,988.00
$830.00

Other Costs
E. Taxes and Other Government Fees
01 Recording Fees
Deed: $120.00 Mortgage: $32.00
02
F. Prepaids
01 Homeowner’s Insurance Premium ( 12 mo.) to XYZ Ins. Co.
02 Mortgage Insurance Premium ( mo.)
03 Prepaid Interest $26.31 per day from 3/23/12 to 3/31/12
04 Property Taxes (
mo.)
05 Windstorm Insurance Premium ( 12 mo.) to YYZ Ins. Co.
G. Initial Escrow Payment at Closing
01 HOA/Condo/Co-op
per month for mo.
02 Homeowner’s Insurance $121.67 per month for 3 mo.
03 Mortgage Insurance per month for mo.
04 Property Taxes
$505.08 per month for 3 mo.
05 Property Tax Escrow Adjustment
06 Windstorm Insurance $72.75 per month for 3 mo.
07
08 Aggregate Adjustment
H. Other
01 $6,000.00 to Reliable Realty Co. / $6,000.00 to Realty Pros LLC
02 HOA Processing Fee
to HOA Corp.
03 Home Warranty
to XYZ Warranty Inc.
04 Inspection Fee
to Inspector Home Co.
05 Mobile Signing Agent
to Quick Signing Co.
06 Real Estate Broker Admin. Fee to Reliable Realty Co.
07 Structural Inspection Fee
to Home Engineering Corp.
08 Title – Owner’s Policy (optional) to Regional Title Co.
I. TOTAL OTHER COSTS (Borrower-Paid)
Other Costs Subtotals (E + F + G + H)
J. TOTAL CLOSING COSTS (Borrower-Paid)
Closing Costs Subtotals (D + I)
Lender Credits
CLOSING DISCLOSURE

$152.00
$152.00
$2,543.48
$1,460.00
$210.48
$873.00
$2,793.50
$365.01
$1,515.24
$695.00
$218.25

$3,226.31
$12,000.00
$700.00
$260.31
$150.00
$200.00
$325.00
$1,591.00
$8,715.29
$8,715.29

$300.00

$0

$13,533.29
$12,703.29
$830.00

$12,000.00

$300.00

$4,331.00

PAGE 2 OF 5 • LOAN ID # 1330172608

Calculating Cash to Close

Use this table to see what has changed from your Loan Estimate.
Estimate

Total Closing Costs (J)

Final

Did this change?

$9,120

$13,533.29

YES

$0

– $830.00

Closing Costs Paid Before Closing
Closing Costs Financed
(Included in Loan Amount)

YES

• You paid these Closing Costs before closing

YES

• You included these closing costs in your loan amount, which
increased your loan amount

$0

– $5,500.00

Down Payment/Funds from Borrower

$29,000

$29,000.00

NO

Deposit

– $5,000

– $5,000.00

NO

$0

$0

NO

– $1,000

– $1,000.00

NO

$0

– $377.06

YES

$32,120

$29,826.23

Funds for Borrower
Seller Credits
Adjustments and Other Credits
Cash to Close

Summaries of Transactions

• See Total Loan Costs (D) and Total Other Costs (I)

• See details in Sections K and L

Use this table to see a summary of your transaction.

BORROWER’S TRANSACTION
K. Due from Borrower at Closing

SELLER’S TRANSACTION
$253,170.79

01 Sale Price of Property
02 Sale Price of Any Personal Property Included in Sale
03 Closing Costs Paid at Closing (J)
04
Adjustments
05
06
07
Adjustments for Items Paid by Seller in Advance
08 City/Town Taxes
to
09
County Taxes
to
10 Assessments
to
11 HOA Dues
3/23/12 to 6/30/12
12
13
14
15

$240,000.00

L. Paid Already by or on Behalf of Borrower at Closing
01 Deposit
02 Borrower’s Loan Amount
03 Existing Loan(s) Assumed or Taken Subject to
04
05 Seller Credit
Other Credits
06
07
Adjustments
08
09
10
11
Adjustments for Items Unpaid by Seller
12
City/Town Taxes 1/1/12 to 3/23/12
13
County Taxes
to
14 Assessments
to
15
16
17

$223,344.56
$5,000.00
$216,500.00

$12,703.29

$467.50

$1,000.00

$844.56

M. Due to Seller at Closing

$240,467.50

01 Sale Price of Property
02 Sale Price of Any Personal Property Included in Sale
03
04
05
06
07
08
Adjustments for Items Paid by Seller in Advance
09 City/Town Taxes
to
10 County Taxes
to
11 Assessments to
12 HOA Dues
3/23/12 to 6/30/12
13
14
15
16

$240,000.00

N. Due from Seller at Closing
01 Excess Deposit
02 Closing Costs Paid at Closing (J)
03 Existing Loan(s) Assumed or Taken Subject to
04 Payoff of First Mortgage Loan
05 Payoff of Second Mortgage Loan
06
07
08 Seller Credit
09
10
11
12
13
Adjustments for Items Unpaid by Seller
14 City/Town Taxes 1/1/12 to 3/23/12
15 County Taxes
to
16 Assessments
to
17
18
19

CALCULATION

CALCULATION

Total Due from Borrower at Closing (K)
$253,170.79
Total Paid Already by or on Behalf of Borrower at Closing (L) – $223,344.56

Total Due to Seller at Closing (M)
Total Due from Seller at Closing (N)

Cash to Close x From

Cash

CLOSING DISCLOSURE

To Borrower

$29,826.23

From x To Seller

$467.50

$93,007.43
$12,000.00
$79,162.87

$1,000.00

$844.56

$240,467.50
– $93,007.43

$147,460.07
PAGE 3 OF 5 • LOAN ID # 1330172608

Additional Information About This Loan
Loan Disclosures
Assumption
If you sell or transfer this property to another person, your lender
will allow, under certain conditions, this person to assume this
loan on the original terms.
x will not allow assumption of this loan.
Demand Feature
Your loan
has a demand feature, which permits your lender to require early
repayment of the loan. You should review your note for details.
x does not have a demand feature.
Late Payment
If your payment is more than 15 days late, your lender will charge a
late fee of 5% of the monthly principal and interest payment.
Negative Amortization (Increase in Loan Amount)
Under your loan terms, you
are scheduled to make monthly payments that do not pay all of
the interest due that month. As a result, your loan amount will
increase (negatively amortize), and your loan amount will likely
become larger than your original loan amount. Increases in your
loan amount lower the equity you have in this property.
may have monthly payments that do not pay all of the interest
due that month. If you do, your loan amount will increase
(negatively amortize), and, as a result, your loan amount may
become larger than your original loan amount. Increases in your
loan amount lower the equity you have in this property.
x do not have a negative amortization feature.
Partial Payment
Your lender will
accept payments that are less than the full amount due (partial
payments). Partial payments will be applied:

Escrow Account
For now, your loan
x will have an escrow account (also called an “impound” or “trust”
account) to pay the property costs listed below. Without an escrow
account, you would pay them directly, possibly in one or two large
payments a year. Your lender may be liable for penalties and interest
for failing to make a payment.
Escrow
Escrowed
Property Costs
over Year 1

$8,394.00 Estimated total amount over year 1 for
your escrowed property costs:
Homeowner’s Insurance, Mortgage
Insurance, Property Taxes, Windstorm
Insurance

Non-Escrowed
Property Costs
over Year 1

$1,711.08 Estimated total amount over year 1 for
your non-escrowed property costs:
HOA dues
You may have other property costs.

Initial Payment

Monthly Payment

$2,793.50 A cushion for the escrow account you
pay at closing. See Section G on page 2.
$699.50 The amount included in your total
monthly payment.

 ill not have an escrow account because you declined it
w
your lender does not offer them. You must directly pay your
property costs, such as taxes and homeowner’s insurance. Contact
your lender to ask if your loan can have an escrow account.
No Escrow
Estimated
Property Costs
over Year 1

Estimated total amount over year 1. You
must pay these costs directly, possibly
in one or two large payments a year.

Escrow Waiver Fee

x not accept partial payments.
If this loan is sold, your new lender may have a different policy.
Security Interest
You are granting a security interest in 456 Avenue A, Anytown,
AZ 12345.

You may lose this property if you do not make your payments or
satisfy other obligations for this loan.

Adjustable Payment (AP) Table
Interest Only Payments?
Optional Payments?

YES for your first 60 payments
NO

Step Payments?
NO
Monthly Principal and Interest Payments
First Change/Amount
$1,266 – $1,582 starting at 61st payment
Subsequent Changes
Every three years
Maximum Payment
$1,664 starting at 108th payment

CLOSING DISCLOSURE

In the future,
Your property costs may change and, as a result, your escrow payment may change. You may be able to cancel your escrow account,
but if you do, you must pay your property costs directly. If you fail
to pay your property taxes, your state or local government may (1)
impose fines and penalties or (2) place a tax lien on this property. If
you fail to pay any of your property costs, your lender may (1) add
the amounts to your loan balance, (2) add an escrow account to your
loan, or (3) require you to pay for property insurance that the lender
buys on your behalf, which likely would cost more and provide fewer
benefits than what you could buy on your own.

Adjustable Interest Rate (AIR) Table
Index + Margin
LIBOR + 4%
Initial Interest Rate
4.375%
Minimum/Maximum Interest Rate
5%/8%
Change Frequency
First Change
Beginning of 61st month
Subsequent Changes
Every 36th month after first change
Limits on Interest Rate Changes
First Change
3%
Subsequent Changes
3%
PAGE 4 OF 5 • LOAN ID # 1330172608

Loan Calculations

Other Disclosures

Total of Payments. Total you will have paid after
you make all payments of principal, interest,
mortgage insurance, and loan costs, as scheduled.

$704,172.58

Finance Charge. The dollar amount the loan will
cost you.

$239,364.26

Amount Financed. The loan amount available after
paying your upfront finance charges.

$212,989.52

Annual Percentage Rate (APR). Your costs over
the loan term expressed as a rate. This is not your
interest rate.

5.61%

Total Interest Percentage (TIP). The total amount
of interest that you will pay over the loan term as a
percentage of your loan amount.

99.01%

Approximate Cost of Funds (ACF). The approximate
cost of the funds used to make this loan. This is not
a direct cost to you.

1.22%

??

Questions? If you have questions about the loan
terms and costs on this form, contact your lender.
To get more information or make a complaint,
contact the Consumer Financial Protection Bureau
at www.consumerfinance.gov/learnmore.

Appraisal
If you paid for a written appraisal or valuation of the property, your
lender is required to give you a copy at no additional cost at least 3
days before closing. If you have not yet received it, please contact
your lender at the information listed below.
Contract Details
See your note and security instrument for information about
• what happens if you fail to make your payments,
• other ways you can default on the loan,
• s ituations in which your lender can require early repayment of the
loan, and
• the rules for making payments before they are due.
Liability after Foreclosure
If your lender forecloses on this property and the foreclosure does not
cover the amount of unpaid balance on this loan,
state law may protect you from liability for the unpaid balance. If
you refinance or take on any additional debt on this property, you
may lose this protection and be liable for debt remaining after the
foreclosure. You may want to consult a lawyer for more information.
x state law does not protect you from liability for the unpaid balance.
Refinance
Refinancing this loan will depend on your future financial situation,
the property value, and market conditions. You may not be able to
refinance this loan.
Tax Deductions
If you borrow more than this property is worth, the interest on the
loan amount above this property’s fair market value is not deductible
from your federal income taxes. You should consult a tax advisor for
more information.

Contact Information
Lender

Mortgage Broker

Real Estate Broker (B) Real Estate Broker (S) Settlement Agent

Name

Ficus Bank

Omega Real Estate
Broker Inc.

Alpha Real Estate
Broker Co.

Epsilon Title Co.

Address

4321 Random Blvd.
Somecity, AZ 54321

789 Local Lane
Sometown, AZ 12345

987 Suburb Ct.
Someplace, AZ 12340

123 Commerce Pl.
Somecity, AZ 12344

NMLS/
License ID

111111

Z765416

Z61456

Z61616

Contact

Joe S.

Samuel G.

Joseph C.

Sarah A.

Contact NMLS/
License ID

12345

P16415

P51461

PT1234

Email

joesmith@
ficusbank.com

[email protected]

[email protected]

sarah@
epsilontitle.com

Phone

123-456-7890

123-555-1717

321-555-7171

987-555-4321

Confirm Receipt
By signing, you are only confirming that you have received this form. You do not have to accept this loan because you have signed or received
this form.

Applicant Signature
CLOSING DISCLOSURE

Date

Applicant Signature

Date
PAGE 5 OF 5 • LOAN ID # 1330172608