Mortgage Payment
Conventional Payment By entering a mortgage amount, interest, and term, a mortgage payment is easily determined. If the taxes and insurance are known, the full payment, principal, interest, taxes and insurance is determined. Private mortgage insurance will be added if the loantovalue is in excess of 80%. FHA Payment By entering a mortgage amount, interest, and term, a mortgage payment is easily determined will include the MIP. If the taxes and insurance are known, the full payment, principal, interest, taxes and insurance is determined. VA Payment By entering a mortgage amount, interest, and term, a mortgage payment is easily determined. If the taxes and insurance are known, the full payment, principal, interest, taxes and insurance is determined. Rent vs. Own This shows a buyer the advantages of tax savings, appreciation, and principal reduction to lower the cost of owning a home. It is suggested that both the buyer and agent agree upon a conservative, realistic estimated appreciation. Tax savings are based on the buyer's marginal tax bracket given to the agent. Since maintenance would be handled by the landlord if the buyer were renting, an estimate of what might be reasonable maintenance is used. Initial Qualifier This calculates the maximum mortgage amount based on qualifying ratios for a particular type of loan. Other factors not considered in this form also determine whether a person qualifies for a loan such as credit score, references, length of credit, ability to repay, and the property's ability to secure the loan. Equity Accelerator This calculates the interest and time savings by applying additional principal contributions each payment. By making regular additional principal contributions on a fixed rate mortgage, interest will be saved and the term shortened. This calculation assumes that the same increased monthly payment will be made from the beginning of the mortgage until it is paid in full. Adjustable Rate Comparison This will compare an adjustable rate mortgage against a fixed rate mortgage to determine when the savings from the ARM will be exhausted in an effort to help the buyer determine the mortgage that will provide the least cost of housing. It assumes that the rate will adjust the maximum amount at each possible period. Cost of Waiting to Buy This shows a buyer what can happen to the payment if while they are waiting for the price of the home to come down, the interest rate were to go up. Due to the higher interest rate, the home may have a higher monthly payment even though the price of the home was less. Housing affordability is based on price and interest rates. Your Best Investment This compares the future value of the amount of money necessary for the down payment on a home using three possible alternatives: a certificate of deposit, a stock investment, and purchasing the home. The comparison involves different amounts of risk that are not measured in the example. Interest Affects the Price This shows the correlation in interest to price. It demonstrates that a .5% change in the rate is approximately equal to a 5% change in price. Will Points Make a Difference Choosing between two loans with different interest rates can be difficult when there are other factors such as a different amount of points. This calculation develops a yield based on rate, points, and holding period to indicate which loan will have lower cost of housing. FHA MIP Release The Annual Mortgage Insurance Premium on a FHA loan adds a considerable expense to a mortgage payment. It is cancelled when the loantovalue reaches 78% of the original sales price. The date can be accelerated by making additional principal contributions to the loan. This app will serve as a tool to determine the required additional principal payments. Assumption Comparison The Assumption Comparison helps a buyer to determine the advantages of assuming a FHA or VA mortgage with a lower interest rate compared to originating a new mortgage at a higher, market rate. The savings on the assumption can be in lower principal and interest payments, equity growing faster and lower closing costs. The choice is purchasing the property with a new conventional loan or assuming the existing mortgage with possibly a second mortgage. This comparison assumes that the purchaser will put an equal amount down to assume the existing mortgage and get a second mortgage for the difference. SELLERUnpaid BalanceBy entering the original mortgage amount, interest, term, and number of payments made, a current unpaid balance is easily determined. HighLow Estimate This is a rough estimate of approximately what the seller will net from the sale of their home based on two different sales prices. Since the specifics of an individual contract are unknown at this point, it is meant to give the seller an idea of what they might be able to expect to net from the sale of their home. Hold or Sell & Buy This analysis can show a homeowner whether a decision to stay in the home or to sell it and buy another home will result in a larger net worth at the end of an anticipated time period. Refinancing Analysis This calculates how many months the owner will need to remain in the home to recapture the costs of refinancing. The decision to refinance a home is made on the feasibility of recapturing the expense involved in refinancing before the home is sold. Seller's Net Sheet This is an estimate of what the seller's closing costs will be based on a specific offer on the home. Exact closing costs will appear on the HUD1 closing statement at the end of the transaction and can depend on the current unpaid balance of seller's existing mortgage, sellerobligated fees for buyer's mortgage if applicable, and other possible unknown charges at this time. BUYER & SELLER2/1 Buydown This illustrates how the home may be more marketable by offering financing concessions to the buyer rather than lowering the price. This is a fixed rate mortgage with the buyer qualifying at the note rate. The seller would be prepaying the interest in advance. The buyer's first year payment would be based on an interest rate 2% lower than the note rate. The second year's payment would be based on an interest rate of 1% lower than the note rate. The remainder of the payments is at the note rate. 3/2/1 Buydown This illustrates how the home may be more marketable by offering financing concessions to the buyer rather than lowering the price. This is a fixed rate mortgage with the buyer qualifying at the note rate. The seller would be prepaying the interest in advance. The payments are calculated at 3% less than the note rate for the first year and 2% less for the second year and 1% less for the third year. The payments for the fourth and remaining years of the mortgage are at the note rate. The cost of the buy down is the difference in the payments in the first, second, and third years from what they should have been. Financing Concessions This form is meant to show an application of sellerpaid funds toward a 21 Buy Down and Buyer closing costs. This could be used to increase the marketability of a listing or to construct a buyer's offer. 80/10/10 Comparison This calculates the payments on the first and second mortgage that equal 90% and the blended rate which is compared to a 90% loan requiring PMI. Most loans greater than 80% loantovalue requires Private Mortgage Insurance. A combination of an 80% first loan and a 10% second loan allows the buyer to only have 10% cash investment and avoid the expense of PMI. The second loan could come from a conventional lending source or possibly from the seller. It must be disclosed in the sales contract. Income Estimator The Income Estimator calculates the minimum amount of income and the maximum amount of debt needed to qualify for a mortgage at a specific rate. If the borrower's debt exceeds the maximum amount, an increase in income is needed. Other factors not considered in this form determine whether a person qualifies for a loan that are not considered in this form such as credit score, references, length of credit, ability to repay, and the property's ability to secure the loan. Assumption Comparison The Assumption Comparison helps a buyer to determine the advantages of assuming a FHA or VA mortgage with a lower interest rate compared to originating a new mortgage at a higher, market rate. The savings on the assumption can be in lower principal and interest payments, equity growing faster and lower closing costs. The choice is purchasing the property with a new conventional loan or assuming the existing mortgage with possibly a second mortgage. This comparison assumes that the purchaser will put an equal amount down to assume the existing mortgage and get a second mortgage for the difference. FHA MIP Release The Annual Mortgage Insurance Premium on a FHA loan adds a considerable expense to a mortgage payment. It is cancelled when the loantovalue reaches 78% of the original sales price. The date can be accelerated by making additional principal contributions to the loan. This app will serve as a tool to determine the required additional principal payments. WEALTH BUILDINGInvestment Analysis Investment analysis is an estimate of the possible outcomes resulting from the purchase and operation of rental real estate. While based on current Federal income tax laws, projections used for rent, expenses, appreciation and continued tax benefits for the investor and property can change during the holding period. Investing in rental real estate involves risk and investors should consider the possibilities carefully. Assumptions There will be a constant appreciation rate during the holding period. Rental income and expenses will remain constant during holding period. Investor wants to maximize wealth and will reinvest positive cash flows. If negative cash flows result, an interest charge will be made at the same savings rate to offset the opportunity cost of being able to use that money elsewhere. The marginal tax rate of the investor will remain constant during the holding period. The marginal tax rate of the investor is used to determine the impact of this investment regardless of what else the investor may do in the year of sale. The investor is able to apply the annual tax savings generated against that year's tax liability. The investor will pay federal taxes for long term capital gains and recapture of cost recovery in the year of sale. Discount Note Calculates the present value of a stream of income to reach a desired yield. The purchaser of the existing note buys the right to collect the payments for the remaining term. In order to increase the yield which was determined by contract in the original mortgage, the current unpaid balance needs to be discounted. Retirement Projection Based on your current net worth, this tool will provide an estimate of what your annual investment contribution needs to be to achieve a desired annual income for a specified period of time after retirement. Savings Plan Projects the future value of savings based on a starting value and regular contributions over time at a specified interest rate. College Savings Projects the monthly or annual contributions to achieve a monetary goal at a period in time to have tuition available for a person's college education based on a specific yield. 





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