Practice Settlement Statement (HUD-1)
You recently listed and sold a home. The closing is scheduled for May 15. You have just
received the Settlement Statement (HUD-1) from Jillian Winkle at Smith and Jones, P.A. (see
the HUD-1 later in this document). Using the listing agreement, the sales contract, and the good-
faith estimate of settlement costs given by the lender at the time of application, you begin the
review. You intend to visit both the sellers and the buyers to deliver the closing package early.
As you review the sales contract, you should trace all items to the HUD-1 and check off
each as you do so.
Page 1
The names of the buyers as listed on the contract are Kyle and Kari Byers (Section D).
The sellers’ legal names, taken from their deed when you first took the listing, are John and
Susan Sellars (Section E).
The property address is 1462 Lime Drive (Sections D and G). Go to page 2 now.
Expenses Paid From Borrower’s Funds at Settlement (Page 2)
Section 800: The lender charged 1% for discount points and 1% for the loan origination
fee.
The Byers paid an appraisal fee of $300 at the time of loan application (POC).
The good-faith estimate of settlement costs given by the lender at the time of application
shows a $55 credit report fee, and $25 for an amortization schedule.
Section 900: The Byers must prepay interest on the loan from May 15 through May 31
because the first payment on the new mortgage is not due until July 1.
The Byers will purchase a one-year hazard insurance policy from State Farm for $840.
Section 1000: The lender requires that an escrow account be set up with two months’
advance hazard insurance deposit, two months’ advance mortgage insurance ($540 annual
premium), and eight months’ advance property taxes based on an estimate of $2,100 annually.
Section 1100: The buyers will pay $1,070 for title insurance, and $20 for courier services.
Section 1200: The estimate also shows recording fees of $10.50 for the deed and $42 for
the mortgage, the documentary stamp tax on the note, and intangible tax on the mortgage.
Section 1300: The Byers will pay the survey fee of $250 to All Corners Surveyor.
Expenses Paid From Seller’s Funds at Settlement (page 2)
Section 700: The listing agreement shows that the seller will pay a commission of 7%. It
will not be split with a cooperating brokerage firm. Check to see that the brokerage fee has been
calculated correctly.
Section 1100: Sellars will pay a $20 courier fee, shown on line 1111.
Section 1200: The Sellars have agreed to pay $10.50 for recording the satisfaction of the
existing mortgage, and will pay for the documentary stamp tax on the deed (check the amount).
Section 1300: The Sellars have agreed to pay Fix It All, Inc. $245 for miscellaneous
repairs to the property.
Now go back to page 1.
Page 1
The contract sales price is $120,000 (lines 101 and 401).
Bring forward the total settlement charges to borrower from page 2, line 1400, to line
103.
Bring forward the total settlement charges to seller from page 2, line 1400, to line 502.
County taxes are estimated to be $2,100 annually. The day of closing is charged to the
buyer. Please check the proration on lines 107 and 407.
The Byers gave a $4,000 earnest money deposit (line 201).
The new mortgage is for $108,000 at 7.5% interest (line 202).
The payoff for the existing first mortgage is $45,452.65, including interest (line 504).
When all items are checked, enter subtotals into lines 120, 220, 420, and 520. Carry
subtotals from those lines to lines 301, 302, 601, and 602.
Enter totals on lines 303 and 603.
Finishing Up
If you find any errors on the statement, circle them and replace them with the correct
figures. Totals on the statement may need to be changed.
■ Sample Settlement Statement (HUD-1)
A. Settlement Statement (HUD-1)
HUD-1Page 1 of 3Previous edition are obsolete
B. Type of Loan
J. Summary of Borrower’s Transaction
100. Gross Amount Due from Borrower
C. Note:
400. Gross Amount Due to Seller
This form is furnished to give you a statement of actual settlement costs. Amounts paid to and by the settlement agent are shown. Items marked
“(p.o.c.)” were paid outside the closing; they are shown here for informational purposes and are not included in the totals.
401. Contract sales price
106. City/town taxes
to
to
to
to
to
to
to
to
to
to
to
to
406. City/town taxes
203. Existing loan(s) taken subject to
503. Existing loan(s) taken subject to
212. Assessments
512. Assessments
302. Less amounts paid by/for borrower (line 220)
602. Less reductions in amounts due seller (line 520)
( )
( )
213.
513.
214.
514.
215.
515.
216.
516.
218.
518.
217.
517.
219.
519.
102. Personal property
101. Contract sales price
402. Personal property
107. County taxes
407. County taxes
204.
103. Settlement charges to borrower (line 1400)
403.
108. Assessments
408. Assessments
205.
505. Payoff of second mortgage loan
104.
404.
109.
409.
206.
506.
201. Deposit or earnest money
501. Excess deposit (see instructions)
210. City/town taxes
510. City/town taxes
105.
1.
D. Name & Address of Borrower:
G. Property Location:
E. Name & Address of Seller: F. Name & Address of Lender:
I. Settlement Date:
H. Settlement Agent:
Place of Settlement:
2.
3.
FHA RHS
Conv. Unins.
6. File Number: 7. Loan Number:
8. Mortgage Insurance Case Number:
VA Conv. Ins.
4.
5.
405.
110.
410.
207.
507.
202. Principal amount of new loan(s)
502. Settlement charges to seller (line 1400)
211. County taxes
511. County taxes
301. Gross amount due from borrower (line 120)
601. Gross amount due to seller (line 420)
111.
411.
208.
508.
112.
412.
209.
509.
120. Gross Amount Due from Borrower
420. Gross Amount Due to Seller
200. Amount Paid by or in Behalf of Borrower
500. Reductions In Amount Due to seller
Adjustments for items unpaid by seller
Adjustments for items unpaid by seller
220. Total Paid by/for Borrower
520. Total Reduction Amount Due Seller
303. Cash
603. Cash
From
To
To Borrower
From Seller
300. Cash at Settlement from/to Borrower
600. Cash at Settlement to/from Seller
Adjustment for items paid by seller in advance
Adjustment for items paid by seller in advance
K. Summary of Seller’s Transaction
OMB Approval No. 2502-0265
The Public Reporting Burden for this collection of information is estimated at 35 minutes per response for collecting, reviewing, and reporting the data. This agency may not
is mandatory. This is designed to provide the parties to a RESPA covered transaction with information during the settlement process.
NNELL8LEM
12345678
2345-4321-00
KYLE BYERS AND KARI BYERS
1460 LIME DRIVE
TALLAHASSEE, FL 32301
JOHN SELLARS AND SUSAN SELLARS
2100 W ST AUGUSTINE ROAD
JACKSONVILLE, FL 32217
FIRST SOUTH BANK, A
FEDERAL SAVINGS BANK
3020 HARTLEY ROAD, SUITE 1
TALLAHASSEE, FL 32308
1460 LiME DRIVE
TALLAHASSEE, FLORIDA 32301
LOT 8, ORANGE PARK SUBDIVISION
SMITH and JONES, P.A
7889 THOMASVILLE RD, TALLAHASSEE, FL
MAY 15, 201_
$120,000.00
$7,288.76
5/1/10
12/31/10
$1,329.04
$128,642.80
$4,000.00
$108,000.00
$112,000.00
$128,642.80
$112
,
000.00
$16,642.80
$120,000.00
5/1/10
12/31/10
$1,329.04
$121,329.04
$9,315.50
$45,452.65
$54,768.15
$121
,
329.04
$
54
,
768.15
$66,560.89
■ Sample Settlement Statement (HUD-1) (continued)
HUD-1Page 2 of 3Previous edition are obsolete
L. Settlement Charges
700. Total Real Estate Broker Fees
800. Items Payable in Connection with Loan
900. Items Required by Lender to be Paid in Advance
1000. Reserves Deposited with Lender
1100. Title Charges
1200. Government Recording and Transfer Charges
1300. Additional Settlement Charges
702. $
to
to
902. Mortgage insurance premium for months to
1002. Homeowner’s insurance months @ $ per month $
1102. Settlement or closing fee
1202. Deed $ Mortgage $ Release $
1302.
701. $
801. Our origination charge
901. Daily interest charges from to @ $ /day
1001. Initial deposit for your escrow account
1101. Title services and lender’s title insurance
1201. Government recording charges
1301. Required services that you can shop for
703. Commission paid at settlement
Division of commission (line 700) as follows :
803. Your adjusted origination charges
903. Homeowner’s insurance for years to
1003. Mortgage insurance months @ $ per month $
1103. Owner’s title insurance
1203. Transfer taxes
1303.
704.
804. Appraisal fee to
904.
1004. Property Taxes months @ $ per month $
1104. Lender’s title insurance
1204. City/County tax/stamps Deed $ Mortgage $
1304.
1005. months @ $ per month $
1105. Lender’s title policy limit $
1205. State tax/stamps Deed $ Mortgage $
1305.
1006. months @ $ per month $
1106. Owner’s title policy limit $
1206.
1007. Aggregate Adjustment -$
1107. Agent’s portion of the total title insurance premium to
1108. Underwriter’s portion of the total title insurance premium to
1109.
1110.
1111.
805. Credit report to
806. Tax service to
808.
809.
810.
811.
Paid From
Borrower’s
Funds at
Settlement
Paid From
Seller’s
Funds at
Settlement
$
$
$
$
$
$
1400. Total Settlement Charges (enter on lines 103, Section J and 502, Section K)
(from GFE #1)
(from GFE #3)
(from GFE #2)
(from GFE #3)
(from GFE #10)
(from GFE #4)
(from GFE #3)
(from GFE #11)
(from GFE #9)
(from GFE #5)
(from GFE #7)
(from GFE #8)
(from GFE #6)
(from GFE #A)
(from GFE #3)
(from GFE #3)
$
$
$120,000 @ 7% = $8,400.00
8,400.00
BIG BEND REALTY
$8,400.00
1.000%
1,200.00
1.000 %
1,200.00
$2,400.00
TALLAHASSEE APPRAISAL COMPANY
(
POC
)$
300.00 BUYER
CREDCO
$55.00
Amortization Schedule Paid to Smith, and Jones, P.A.
$25.00
5/15/10
6/01/10
22.19
$377.26
1
STATE FARM
$840.00
$1,630.00
2
70.00
140.00
2
45.00
90.00
8
175.00
1,400.00
$1,070.00
108
,
000.00
120
,
000.00
COURIER FEE
$20.00
$20.00
$52.50
10.50
42.00
10.50
$10.50
$594.00
840.00
378.00
$840.00
216.00
SURVEY TO ALL CORNERS SURVEYOR
250.00
$250.00
PEST INSPECTION
(
NO REQUIRED FEE PER CONTRACT
)
MISC REPAIRS TO FIX IT ALL, INC.
$245.00
$7,288.76
$9,515.50
■ Sample Settlement Statement (HUD-1) (continued)
HUD-1Page 3 of 3Previous edition are obsolete
Comparison of Good Faith Estimate (GFE) and HUD-1 Charrges
% $
or
Charges That In Total Cannot Increase More Than 10%
Good Faith Estimate
Good Faith Estimate
Good Faith Estimate
Total
Increase between GFE and HUD-1 Charges
HUD-1
HUD-1
HUD-1
Charges That Cannot Increase HUD-1 Line Number
Government recording charges
Charges That Can Change
Your initial loan amount is
Loan Terms
Note: If you have any questions about the Settlement Charges and Loan Terms listed on this form, please contact your lender.
Daily interest charges
Your initial interest rate is
Initial deposit for your escrow account
Your loan term is
years
No
No
No
No
Property taxes
Homeowner’s insurance
Flood insurance
No
Yes, it can rise to a maximum of $
Yes, your maximum prepayment penalty is $
Yes, you have a balloon payment of $ due in years
on .
You do not have a monthly escrow payment for items, such as property taxes and
You have an additional monthly escrow payment of $
that results in a total initial monthly amount owed of $ . This includes
principal, interest, any mortagage insurance and any items checked below:
homeowner’s insurance. You must pay these items directly yourself.
Principal
Interest
Mortgage Insurance
includes
%
Our origination charge
Your adjusted origination charges
Transfer taxes
Homeowner’s insurance
Your initial monthly amount owed for principal, interest, and any
mortgage insurance is
Can your interest rate rise?
Even if you make payments on time, can your loan balance rise?
Does your loan have a prepayment penalty?
Does your loan have a balloon payment?
Total monthly amount owed including escrow account payments
Even if you make payments on time, can your monthly
amount owed for principal, interest, and mortgage insurance rise?
$
# 1001
#
# 1201
# 901
#
# 903
#
# 801
#
#
# 802
#
#
# 803
#
#
#
# 1203
$ /day
$
and can change again every after . Every change date, your
interest rate can increase or decrease by %. Over the life of the loan, your interest rate is
guaranteed to never be lower than % or higher than %.
owed can rise to $ . The maximum it can ever rise to is $ .
$1,080.00
$1,200.00
$1,080.00
$1,200.00
$2,160.00
$2,400.00
$594.00
$594.00
$52.50
$52.50
Credit Report Fee
805
$55.00
$55.00
Amortization Schedule
808
$25.00
$25.00
Title Insurance $1,070.00
$1,070.00
Courier Fee
1111
$20.00
$20.00
Recording Fee
1201
$52.50
$52.50
$1,630.00
$1,630.00
22.19
$665.70
$377.26
$975.00
$850.00
Survey Fee
1302
$250.00
$250.00
108,000.00
30
7.5
800.15
245.00
1045.15
