👤
Answered

Sal paid his annual homeowners insurance on january 10th. he eventually sells his property on march 27th. how will sal's homeowners insurance be categorized on the settlement statement?

Answer :

ANTHOUGOIN

Sal's homeowners' insurance premium will be categorized as Prepaid Mortgage Costs on the settlement statement.

What are the prepaid mortgage costs?

The prepaid mortgage costs are the upfront cash payments made for certain mortgage expenses before their due dates.

Some prepaid mortgage costs are:  

  • Homeowners insurance
  • Property taxes
  • Mortgage interests.

Thus, Sal's homeowners' insurance premium will be categorized as Prepaid Costs on the settlement statement.

Learn more about prepaid mortgage costs at https://brainly.com/question/27597942

#SPJ1

In Trainings: Other Questions