Here are my closing costs. As I go over these I can't help but wonder if some of these like the appraisal fee, Homeowner's Insurance, Property tax (on Primary) and Title fees shouldn't be assigned only to the primary residence cost basis since they are specific to that property. Should I just consider them part of the necessary costs of securing a loan and split them proportionally to the payoff amounts?
| | P.O.C. (Payed outside of Closing) | Debit | Credit |
| Primary Home Mortgage Payoff to Loan Company A | | $271,551.01 | |
| New combo Loan | | | $422,000.00 |
| 0.2150% of Loan Amount (Points) | | $907.30 | |
| Appraisal Fee | $750.00 | | |
| Admin Fee to Mortgage company | | $995.00 | |
| Prepaid Interest (remainder of closing month) | | $312.16 | |
| Homeowner's insurance 13 months | | $749.45 | |
| Property Tax | | $2,474.90 | |
| Aggregate Adjustment | | | $115.32 |
| mortgage processing fee | | $695.00 | |
| Title Insurance | | $648.00 | |
| Lender Premium Tax to Title Co. | | $64.80 | |
| Settlement or closing fee to Title Co. | | $577.50 | |
| Reconveyance Tracking Service Fee to Title Co. | | $44.00 | |
| Government Recording and Transfer Charges - Mortgage | | $131.00 | |
| Unsecured Debt Paydown to Rental Property Loan Company B | | $140,965.20 | |
| | P.O.C. | Debit | Credit |
| Subtotals | $750.00 | $420,115.32 | $422,115.32 |
| Due to Borrower | | $2,000.00 | |
| Totals | $750.00 | $422,115.32 | $422,115.32 |
If I do just split all the closing costs proportionally to the property payoff amounts I get the numbers below:
| New Loan total | $422,000.00 | | |
| minus Primary payoff | $271,551.01 | | |
| minus rental payoff | $140,965.20 | | |
| Closing Costs= | $9,483.79 | | |
| | | | |
| Total Cost of both Payoffs = | $412,516.21 | | |
| | | | |
| Rental divided by Total Cost | -$140,965.20 / $412,516.21= | 0.34172 |
| Primary divided by Total Cost | -$271,551,01 / $412,516.21= | 0.65828 |
| | | | |
| | Primary Closing Costs | Rental closing Costs | |
| $9483.79 x 0.34172 | | $3,240.80 | |
| $9483.79 x 0.65828 | $6,242.99 | | |
| | | | |
| Primary Portion of loan (Payoff + 65.828% of closing costs) | $277,794.00 | | |
| Rental Portion of loan (Payoff + 34.172% of closing costs) | | $144,206.00 | |
$277,794.00 is what I think I should plug in for the Turbotax question: "Since you first took out the loan, how much has been spent to buy, improve or build the home it's secured by?"
Does that seem right?
