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How to Read a HUD Statement

by Ryan Stearns

The HUD-1 Settlement Statement lists the various fees associated with purchasing property with a mortgage or refinancing your current mortgage. These fees and expenses can be understood by breaking down the specific numbers listed and calculating the total amount of money you are paying for your new mortgage or your refinance. The end result of these calculations will be the amount of money you will have to come up with or the amount of money you are owed upon the completion of the transaction.

The Summary of the Borrower's Transaction on the left column of the first page lists the gross amount due from Borrower based on items such as the contract of sale price, if applicable, the total settlement charges and the new mortgage amount.

Line 303 represents the amount of cash that is due to the Borrower or from the Borrower after calculating the total amounts owed and the total amounts received.

The Summary of the Seller's Transaction on the right column of the first page lists the gross amount due to Seller based on items such as the contract of sale price, open taxes due, settlement charges and the payoff of any applicable mortgages on the property.

Line 603 represents the amount of cash that is due to the Seller or from the Seller after calculating the total amounts owed and the total amounts received.

The left column of the second page lists the aggregate of the settlement charges paid by the Borrower, which is cross referenced on Line 103 of the first page.

The right column of the second page lists the aggregate of the settlement charges paid by the Seller, which is cross referenced on Line 502 on the first page.

Page 3 lists a comparison of the actual charges and amounts paid to the Good Faith Estimate issued to you prior to the closing of the transaction. Page 3 also lists the terms of the loan.

About the Author

Ryan Stearns has contributed to various online legal publications. He received his J.D. from New York Law School and his B.A. in political science from SUNY College at Buffalo.

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