I would structure it as a note to be created with 4 years prepaid interest and 4 year balloon for 850k.

Prepaids = $153.70F.

.- At closing:  Down payment, points, other lender fees, prepaid insurance (most lenders want you to prepay for either the length of the loan or a full annual payment), prepaid interest (usually interest till the end of the month), and standard closing costs (from your closing agent). 

$284,750, it’s your cost of the building portion plus 85% of your closing costs not counting prepaid taxes and insurance.

I will also have another $2600 in pre-paids that cover the mortgage for 6 months and 7k in closing costs.

Closing costs for me average 4-5k this includes pre paid insurance and taxes

I'm glad I only deal in cash, seems lenders can be a real nightmare and if my numbers (and I assume any number, taxes, prepaids, etc) aren't rounded off there is a high probability of issues.

.$1234 = Rate extension lock fee$1357= Prepaids$477 = Appraisals$1095 = loan processing feeThey took $1792 from me in Dec 2017 for appraisals and initial fee and fooled me by giving 3.875 but in reality my rate turns out to be 4.25 and it will take me 7+ years to recover all this fee ($3024 + 1234 = around $4300).

I have a situation today where the buyer/borrower is limited on funds to close, so he has the option of paying a higher interest rate to get a Lender Rebate to pay for some of his closing costs and prepaid costs.or He could also ask the buyer agent (who I don't know) to contribute with Realtor Rebate.

Prepaids $595Homeowner's Insurance Premium (12 months) $420 --> I understand this fee.