$350,0000 total mortgage costs analysis report
DESCRIPTION
Prepared Exclusively for Minnesota Homebuyer’s by Peter Boyle. Sample Shows Homebuyers Need Options! Lowest rate doesn’t always mean lowest home loan cost. Customizing and comparing real estate mortgage programs over time determines real costs to homebuyer’s. Peter Boyle, Senior Mortgage Officer, NMLS # 218261, Summit Mortgage Corporation, Plymouth, MN.TRANSCRIPT
www.peterboylehomeloans.com(952) 314-4763Fax
[email protected](612) 701-6816Tel
13355 10th Avneue N Plymouth, MN 55441
123 FHA Conventional Street Suburban, MN 11111
Caren ConformingPrepared For:
June 19, 2010
Prepared by Peter Boyle
TOTAL COST ANALYSIS
$280,926$258,103$239,391$263,013 Net Worth
$80,301$85,730$81,145$109,005 Accum. Total$200,625$172,372$158,246$154,008Equity$226,023$254,276$268,402$272,640Loan Balance$426,648$426,648$426,648$426,648Home Value
6%6%6%6%Rate of Return$490$139$0$34Monthly Amount$0$34,600$44,600$56,850Opening Balance
Con 20% DnConv. 10% DnConv 5% DnFHA FixedProgram Name
16.92 yrs.19.08 yrs.20.83 yrs.18.58 yrs.Freedom Point
$425,775$385,137$357,518$393,947 Net Worth
$142,501$125,335$109,453$149,403 Accum. Total$283,274$259,801$248,065$244,544Equity$187,780$211,252$222,989$226,510Loan Balance$471,054$471,054$471,054$471,054Home Value
ACCUMULATION vs. REDUCTIONDifferent mortgage strategies can create different results. The illustration to the left compares 2 unique strategies. One strategy assumes prepaying your mortgage, the other shows investing in some type of investment vehicle TBD by your financial advisor.
Based on the assumptions in thisanalysis the Mortgage Plan in columntitled 'Con 20% Dn' has the potentialto create the most wealth for yoursituation in 10 yrs.
Based on the assumptions in thisanalysis the Mortgage Plan in columntitled 'Con 20% Dn' has the potentialto create the most wealth for yoursituation in 15 yrs. The plan incolumn titled 'Con 20% Dn' will helpyou reach your Freedom Point thesoonest.
$77,500$42,900$25,600$20,650Total Cash To Close
$490$139$0$34 Net Savings
$1,461$1,811$1,951$1,917Monthly Pmt.
$0$168$216$155Mtg. Ins.$1,461$1,643$1,734$1,762Payment360360360360Term (months)4.75%4.75%4.75%4.75%Interest Rate$280,000$315,000$332,500$337,750Loan Amount
Con 20% DnConv. 10% DnConv 5% DnFHA FixedProgram Name
Based on these options, columntitled 'Con 20% Dn' has the lowestmonthly payment.
SUMMARYThis Section overviews your monthly payments for each prospective Mortgage Plan. Please note, the payments shown do not include any Escrows that may be collected with your payment.
Current value $350,000, appreciationassumption 2%
$45,388$17,226$0$2,752 Net Savings
$128,796$156,958$174,184$171,432 Total Cost
$7,500$7,900$8,100$8,400Closing & Points$226,023$254,276$268,402$272,640Balance Left$121,296$149,058$166,084$163,032Int & MI Paid$53,977$60,724$64,098$65,110Principal Paid$175,274$209,783$230,182$228,142Total Payment
Con 20% DnConv. 10% DnConv 5% DnFHA FixedProgram Name
Based on a 120 month comparison,the loan in column titled 'Con 20%Dn' has the lowest total cost.
TOTAL COST ANALYSISOne of the most important metrics to consider when selecting the right Mortgage Plan for you, is how long you plan on living in the home or what is your loan retention time going to be. The table on the left compares the true total cost of each mortgage plan based on a pre determined comparison period.
NOTICE AND DISCLAIMER : The results above are based on (i) information provided by you, (ii) estimates of interest rates, your ability to save, your tax bracket, closing costs and otheramounts, (iii) currently available loan programs and (iv) information and assumptions discussed with your advisor; all of which might change over time. If the information or assumptions arenot correct or change, then the results above will change. Your advisor will provide additional information about costs, fees and other information required by state and federal law.
www.peterboylehomeloans.com(952) 314-4763Fax
[email protected](612) 701-6816Tel
13355 10th Avneue N Plymouth, MN 55441
123 FHA Conventional Street Suburban, MN 11111
Caren ConformingPrepared For:
June 19, 2010
Prepared by Peter Boyle
TOTAL COST ANALYSIS
$0
6.000 %
$490
$2,054
$0
$2,054
$0
$438
$155
$0
$1,461
$0
$1,461
4.980 %
0.000 %
$7,500
360
4.750 %
Fixed
$280,000
20.000 %
$350,000
2nd Mtg1st Mtg
Con 20% Dn
$34,600
6.000 %
$139
$2,404
$0
$2,404
$0
$438
$155
$0
$1,811
$168
$1,643
4.966 %
0.000 %
$7,900
360
4.750 %
Fixed
$315,000
10.000 %
$350,000
2nd Mtg1st Mtg
Conv. 10% Dn
$44,600
6.000 %
$0
$2,544
$0
$2,544
$0
$438
$155
$0
$1,951
$216
$1,734
4.960 %
0.000 %
$8,100
360
4.750 %
Fixed
$332,500
5.000 %
$350,000
2nd Mtg1st Mtg
Conv 5% Dn
$56,850
6.000 %
$34
$2,509
$0
$2,509
$0
$438
$155
$0
$1,917
$155
$1,762
4.964 %
0.000 %
$8,400
360
4.750 %
Fixed
$337,750
3.500 %
$350,000
2nd Mtg1st Mtg
FHA Fixed
Asset Accum. Open
Asset Accum. Int. Rate
Mo. Asset Accu.
Total PITI
Term Reduction
PITI
Max Balance
Recast Prd/Stop
Adj Cap (Mos)
Adj Cap %
Pymt. Adjust.
Other
Prop Taxes
Haz Ins.
HOA
Adj Month
Adj Cap
First Adj Mos
First Adj Cap
Scenario
LifeCap
Margin
Index
Total P&I
Mtg. Ins.
Principal & Int.
APR
Points
Closing
Term
Interest Rate
Loan Type
Loan Amount
Equity (%)
Value
NOTICE AND DISCLAIMER : The results above are based on (i) information provided by you, (ii) estimates of interest rates, your ability to save, your tax bracket, closing costs and otheramounts, (iii) currently available loan programs and (iv) information and assumptions discussed with your advisor; all of which might change over time. If the information or assumptions arenot correct or change, then the results above will change. Your advisor will provide additional information about costs, fees and other information required by state and federal law.