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    xxximino's Avatar
    xxximino Posts: 2, Reputation: 1
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    #1

    Oct 20, 2017, 02:54 PM
    Should I amortized the closing costs of a mortgage loan that paid off another loans?
    We have a mortgage loan of $1.5m to pay off the other loans. So we consolidated the following debts into a new loan which the amount is $1.5m. We "wrap around" because the mortgage value exceeds the value of the property. We do this so that we can reduce the cost of the debt to the company which continues to operated at a loss over the past 5 years.

    There are closing expenses as we acquire the loan:
    Reimburse Fee
    Interim Interest
    Credit Reports
    Appraisal fee
    Environmental fee
    Lien searches
    Legal fees
    Packaging fee
    TOTAL = 70k

    There is also another expenses which is not included in closing cost.
    Title fees and expenses = 60k


    How to properly record these expenses, which one to amortize and which one to just record directly as expenses? Thank you so much in advance!
    codygbobo's Avatar
    codygbobo Posts: 1, Reputation: 1
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    #2

    Oct 23, 2017, 07:58 AM
    The monthly payment and interest are calculated as if the mortgage or loan were being paid over this length. Also choose whether 'Length of Amortized Interest' is years or months.. . Should be checked if the 'Other Closing Costs' are to be included in the loan as... The number of payments you will make to pay off the loan

    The monthly payment and interest are calculated as if the mortgage or loan were being paid over this length. Also choose whether 'Length of Amortized Interest' is years or months, Should be checked if the 'Other Closing Costs' are to be included in the loan as the number of payments you will make to pay off the loan

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