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July 5, 2004 |
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Mr & Mrs Robert Average 1234 Oak Street Torrance, CA 90505
Dear Mr & Mrs Robert Average,
Thank you for considering Perfect Financial for your home loan needs. I have attached a worksheet that contains detailed information about the loans that you've expressed interest in. Here are the some of the loan details:
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Proposed Financing Terms
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Options |
Rate |
Payment |
Fees |
T. Costs† |
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Loan 1 |
30 year fixed rate |
5.250% |
$1,325 |
$3,000 |
$97,472 |
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Loan 2 |
30 year adjustable rate |
4.000% |
$1,146 |
$1,200 |
$163,964 |
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Loan 3 |
30 year adjustable rate |
4.375% |
$1,198 |
$0 |
$174,125 |
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By the end of year 8, loan 1 total costs are the lowest by $76,653. |
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Let's take a look at a home purchase versus renting. When we consider the tax benefits provided by a mortgage loan, plus the benefit of home appreciation, owning a home can prove to be a substantial advantage. |
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Ownership versus Renting
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Total Payments |
Tax Benefits |
Appreciation |
Total Cost |
Total Savings* |
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Current Rent |
$147,013 |
N/A |
N/A |
$147,013 |
N/A |
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Loan 1 |
$127,228 |
$34,955 |
$81,261 |
$11,012 |
$136,001 |
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Loan 2 |
$181,921 |
$60,223 |
$81,261 |
$40,437 |
$106,576 |
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Loan 3 |
$191,501 |
$64,426 |
$81,261 |
$45,814 |
$101,199 |
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*Estimates based on 8 year projections, tax benefits are based on a 37% tax bracket, rent payments of $1,425 based on 2% annual increase **Home appreciation based on Loan 1: $300,000 / Loan 2: $300,000 / Loan 3: $300,000 sale price and Loan 1: 3.00% / Loan 2: 3.00% / Loan 3: 3.00% annual appreciation rate, |
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The following pages will provide a detailed description
of each loan considered as well as performance estimates. If you have any
questions please call me at 310-555-7537. Thank you for considering
Perfect Financial. Sincerely, John Smith |
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Click here for more info about this presentation
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prepared for: |
prepared by: |
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Mr & Mrs Robert Average 1234 Oak Street Torrance CA 90505 310-555-1234, 310-555-6547 average@loanvibe.com |
John Smith Perfect Financial 2500 Industry Way Torrance, CA 90509 310-555-7537, 310-555-5090 joeloanofficer@loanvibe.com |
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| Transaction Descriptions | Loan 1 | Loan 2 | Loan 3 |
| Standard Fixed | Std 1/6 Arm | Std 2/5 Arm | |
| In House | In House | In House | |
| 30 year FIXED | 30 year ARM | 30 year -ARM | |
| 5.250% | 4.000% | 4.375% | |
| 1.250% | 0.500% | 0.000% | |
| Fixed | 6, 1.00%/10.38% | 3, 0.00%/0 | |
| 5.36% | 8.49% | 9.17% | |
| $240,000 | $240,000 | $240,000 | |
| $3,000 | $1,200 | $0 | |
| 360 | 360 | 360 | |
| $5,200 | $4,268 | $5,675 | |
| 20/20% | 18/18% | 19/19% | |
| $1,716 | $1,536 | $1,589 | |
| $300,000 | $300,000 | $300,000 | |
| 3% | 3% | 3% | |
| LTV: 80% | LTV: 80% | LTV: 80% | |
| $60,000 | $60,000 | $60,000 | |
| $63,000 | $61,200 | $60,000 | |
| $8,500 | $8,500 | $8,500 | |
| 37% | 37% | 37% | |
| 0.00% for 360 mos | 3.00% for 48 mos | 3.00% for 48 mos | |
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prepared for: |
prepared by: |
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Mr & Mrs Robert Average 1234 Oak Street Torrance CA 90505 310-555-1234, 310-555-6547 average@loanvibe.com |
John Smith Perfect Financial 2500 Industry Way Torrance, CA 90509 310-555-7537, 310-555-5090 joeloanofficer@loanvibe.com |
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| Worksheet | Loan 1 | Loan 2 | Loan 3 |
| Evaluation for month: 060 | |
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| $63,676 | $94,091 | $101,211 | |
| lowest | higher by $30,415 | higher by $37,534 | |
| $22,450 | $34,370 | $37,448 | |
| Evaluation for month: 072 | |
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| $75,182 | $117,610 | $125,740 | |
| lowest | higher by $42,428 | higher by $50,557 | |
| $26,707 | $43,072 | $46,524 | |
| Evaluation for month: 084 | |
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| $86,452 | $140,909 | $150,053 | |
| lowest | higher by $54,457 | higher by $63,601 | |
| $30,877 | $51,692 | $55,519 | |
| Evaluation for month: 096 | |
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| $97,472 | $163,964 | $174,125 | |
| lowest | higher by $66,492 | higher by $76,653 | |
| $34,955 | $60,223 | $64,426 | |
Click here for more info about this presentation
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prepared for: |
prepared by: |
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Mr & Mrs Robert Average 1234 Oak Street Torrance CA 90505 310-555-1234, 310-555-6547 average@loanvibe.com |
John Smith Perfect Financial 2500 Industry Way Torrance, CA 90509 310-555-7537, 310-555-5090 joeloanofficer@loanvibe.com |
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| Chart | |||
| Chart based on Accum Costs | |||
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Rates, programs and fees are subject to change without notice. For rate and fee updates please contact John Smith at 310-555-7537.
†BOTTOM
LINE