LoanVibe Worksheet - Mr & Mrs Robert Average

July 4, 2004
Mr & Mrs Robert Average 1234 Oak Street Torrance, CA 90505 Dear Mr & Mrs Robert Average, Purchasing a new home with a low down payment will often require Private Mortgage Insurance (PMI). There is a second alternative that is often overlooked in high "Loan-To-Value" (LTV) situations. A new, second mortgage to compensate for a small down payment can in many cases provide significant, long term cost reductions. The following tables describes and compares these two types of financing structures.
PMI Plan
	Terms	Rate	Fees	Payment	Ttl Costs†
1st Mortgage	30 year fixed rate	5.875%	5,400	$1,597
PMI	90LTV17%.pmi	0.390%	$0	$88
*Total*			$5,400	$1,685	$125,094
	†Estimates based on 8 year projections, 1st Loan amount is $270,000

2nd Mortgage Plan
	Terms	Rate	Fees	Payment	T. Costs*
1st Mortgage	30 year fixed rate	5.125%	$4,800	$1,307
>2nd Mortgage	15 year fixed rate	6.875%	$450	$268
*Total*			$5,250	$1,574	$110,834
	*Estimates based on 8 year projections, 1st Mortgage loan amount is $240,000, 2nd Mortgage loan amount is $30,000

	BOTTOM LINE 2nd Mortgage Plan closing costs are lower by $150 By the end of year 8, 2nd Mortgage Plan total costs are lower by $14,260


The following pages will provide a detailed description of each loan considered as well as additional performance estimates. If you have any questions please call me at 310-555-1234. Thank you for considering ACME Mortgage. Sincerely, Joe Officer

prepared for:	prepared by:
Mr & Mrs Robert Average 1234 Oak Street Torrance CA 90505 310-555-1234, 310-555-6547 average@loanvibe.com	Joe Officer ACME Mortgage 1234 Main Street Torrance, CA 90503 310-555-1234, 310-555-6525 joe@perfectfinancial.com


Transaction Descriptions		Loan 1	Loan 2

Loan Name:		Standard Fixed	Standard wo/ PMI
Lender Name:		In House	In House
Type:		30 year FIXED	30 year FIXED

Start Rate:		5.875%	5.125%
Points:		2.000%	2.000%
Adjustable Description: [adjs,caps]		Fixed	Fixed

APR:		6.06%	5.30%
Loan Amount:		$270,000	$270,000
Closing Costs:		$5,400	$5,250

Last Payment Month:		360	360
Income Required to Qualify:		$5,894	$4,605
Qualify Ratios:		22/22%	18/18%

Start Payment w/PMI [PITI]:		$1,945	$1,831
Start Payment w/PMI [PI]:		$1,685	$1,574
Private Mortgage Insurance [PMI]:		0.39%	0.00%

Borrower's Monthly Income:		$8,500	$8,500
Borrower's Tax Bracket:		37%	37%

prepared for:	prepared by:
Mr & Mrs Robert Average 1234 Oak Street Torrance CA 90505 310-555-1234, 310-555-6547 average@loanvibe.com	Joe Officer ACME Mortgage 1234 Main Street Torrance, CA 90503 310-555-1234, 310-555-6525 joe@perfectfinancial.com


Worksheet		Loan 1	Loan 2
Evaluation for month: 060
Accum Costs		$82,085	$73,658
Accum Costs Compare		higher by $8,426	lowest
Accum Payment		$101,094	$94,460
Accum Principal		$19,145	$26,051
Accum Tax Benefits		$28,373	$25,311
Evaluation for month: 072
Accum Costs		$96,701	$86,410
Accum Costs Compare		higher by $10,291	lowest
Accum Payment		$121,313	$113,351
Accum Principal		$23,694	$32,191
Accum Tax Benefits		$33,781	$30,029
Evaluation for month: 084
Accum Costs		$111,043	$98,809
Accum Costs Compare		higher by $12,234	lowest
Accum Payment		$141,532	$132,243
Accum Principal		$28,518	$38,684
Accum Tax Benefits		$39,088	$34,617
Evaluation for month: 096
Accum Costs		$125,094	$110,834
Accum Costs Compare		higher by $14,260	lowest
Accum Payment		$161,751	$151,135
Accum Principal		$33,633	$45,551
Accum Tax Benefits		$44,287	$39,066

prepared for:	prepared by:
Mr & Mrs Robert Average 1234 Oak Street Torrance CA 90505 310-555-1234, 310-555-6547 average@loanvibe.com	Joe Officer ACME Mortgage 1234 Main Street Torrance, CA 90503 310-555-1234, 310-555-6525 joe@perfectfinancial.com


Chart
Chart based on Accum Costs