MetLife Home Loans
Net Financial Benefit Worksheet for Refinance Transactions
For the refinance of an existing loan, there must be a net tangible benefit to the borrower.
An FHA streamline refinance:
-Must comply with Section B below and the Net Financial Benefit Worksheet for FHA Streamline Refinances
All other refinances:
-Complete Section A (Alternative Financial Benefit to Borrower)
-If Section A not applicable, (Not applicable or "any item not checked", Section B (Points and Settlement Fees Recoup) must be
completed
Loan #:
Borrower Name:
Date Prepared:
A. Alternative Financial Benefit to Borrower
Loan term shortened (e.g. from 30 year to 15 year term)
Consolidation of loan(s) and/or debt(s) into a single new loan that results in a monthly savings
Provides cash out to the borrower(s) for personal use
ARM to fixed rate
ARM to Hybrid ARM (>= 3 year fixed term)
Balloon to fixed rate
Buyout of spouse/heir
Other reason approved by DMU or Dallas Exception Desk - explain below
B. Points and Settlement Fees Recoup
1. Total Discount Points (financed or paid in cash)
Total Closing Costs* +
Total Cost to Refinance (New Loan) = $ - (A)
2. P&I on Existing First Lien
P&I on Existing Second Lien + $ -
P&I on Existing Third Lien + $ -
Monthly MI on Existing Lien + $ -
Total P&I of Current Loans = $ - (B)
3. P&I on New First Lien2
P&I on Second Lien, if applicable + $ -
P&I on Third Lien, if applicable + $ -
Monthly MI on New Lien + $ -
Total P&I of New Loan = $ - (C)
4. Total P&I with MI (if applicable) of Current Liens (B) $ -
Total P&I with MI (if applicable) of New Liens (C) - $ -
Monthly Savings = $ - (D)
5. Total Cost to Refinance (New Loan) (A) $ -
divided by Monthly Savings (D) / $ -
Total Number of Months To Recoup Refinance Costs = #DIV/0! (E)
(E) can not be greater than 60 months if Fixed Rate or 36 months if ARM
* Closing costs…
Closing costs are the total costs paid by the borrower to obtain the loan, including lender/broker fees as well as third party settlement service fees
… Do not include prepaids.
… Does include the VA Funding Fee, if applicable
… Does include upfront or single premium PMI/MIP. (If FHA transaction in which there is an MIP
refund, only the net MIP need be included.)
… Does include any Prepayment Penalty on existing lien
2
When calculating new loan P&I using the qualifying note for the loan. See Ratios/Qualifying Rate section of the loan product description.
a6891ee6-0892-4cc3-aa73-407bec26cf49.xls Doc Type: CRDTPKG 02-05-2009