# Closing Costs: Calculations & Practice

Instructions:

question 1 of 3

### Anna's loan requires that she escrow seven months of her annual property tax bill of \$2,439. How much money will be collected at the time of closing?

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### 2. Buyer's and seller's expenses in a real estate transaction are called

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If you're interested in assessing your understanding of closing costs and how they are calculated, you have reached the right place! This interactive quiz and accompanying printable worksheet ask you multiple-choice questions about various real estate terms related to closing costs. They also test your ability to calculate closing costs through real-world examples.

## Quiz & Worksheet Goals

This quiz and worksheet gauge your ability to:

• Calculate annual property taxes and prepaid interest collected at the time of closing
• Define proration in real estate
• Identify the name for buyer's and seller's expenses in a real estate transaction
• Choose the correct name for the acronym CFPB

## Skills Practiced

• Problem solving - use acquired knowledge to solve practice problems related to property taxes and prepaid interest at the time of closing
• Defining key concepts - ensure that you can accurately define proration and choose the correct phrase for the acronym CFPB
• Information recall - access the knowledge you've gained regarding expenses for buyers and sellers during a real estate transaction

Accompanying this quiz and worksheet is a lesson called Closing Costs: Calculations & Practice. Review this lesson to better understand the following:

• Purpose of the closing disclosure form
• Definitions of sale price and loan term
• Alternate words for the phrases 'origination fee' and 'transfer tax'
• Meaning of an appraisal and importance of title insurance
• System on which mortgage payments are based
• Why escrow accounts are established
Final Exam
Chapter Exam

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