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					                                      Comparison of Conventional Plus to FHA
                                              Purchase Transactions
A. Loan Information
  1   Sales Price                                                                    $            180,000.00

  2   Current FHA Mortgage Rate (Obtain rate by clicking here)                                        3.250%

  3   Current Conventional Plus Mortgage Rate - No DPAL (Obtain by clicking here)*                    3.500%

  4   Current Conventional Plus Mortgage Rate with DPAL (Obtain by clicking here)*                    4.250%

  5   DPAL Amount (Maximum of 3% of Sales Price)                                     $             5,400.00

  6   Estimated Closing Costs                                                        $            15,000.00

  7   Seller Concessions (if any)                                                    $             5,400.00

B. MCC Information (if eligible)
  1   Annual Income                                                                  $            60,000.00

  2   Expected Annual Real Estate Taxes                                              $             6,500.00

  3   No. of Federal Tax Exemptions                                                                       1

  4   Federal Tax Filing Status                                                      Single   1


*Enter either the 60- or 90-day rate for both loans with and without DPAL.

 3/21/2013



                                    CLICK ON THE RESULTS TAB BELOW TO SEE RESULTS.
                                             Comparison of FHA and Conventional Plus Results
                                                         Purchase Transactions
                                                                                                                    Conventional Plus
                                                                                              WITH DPAL                                              NO DPAL
                                                                                     Monthly MI        Single MI                           Monthly MI        Single MI
                                                               FHA                    Premium          Premium                              Premium          Premium
Maximum LTV                                                       96.50%                     97%               97%                                 97%               97%
Sales Price                                              $       180,000            $    180,000     $     180,000                        $    180,000    $      180,000
Mortgage Rate                                                     3.250%                  4.250%            4.250%                              3.500%            3.500%
Base Mortgage Amount                                     $       173,700            $    174,600     $     174,600                        $    174,600    $      174,600
                                                                                                                                 1                                         1
MI Premium (Upfront %)                                              1.75%                      0.00%                    2.70%                    0.00%             2.70%
                                                                                                        1                                                1
MI Premium (Annual %)                                              1.25%                      0.85%                    0.00%                     0.85%             0.00%
Gross Mortgage Amount                                    $       176,740            $       174,600          $       174,600              $    174,600       $   174,600
Total P&I                                                $           769            $           859          $           859              $        784       $       784
Monthly MIP                                              $           181            $           124          $           -                $        124       $       -
Total Mortgage Payment                                   $           950            $           983          $           859              $        908       $       784
Monthly Savings (Compared to FHA)                                                   $           (32)         $            91              $         42       $       166
Annual Savings (Compared to FHA)                                                    $          (390)         $         1,094              $        509       $     1,993

MCC Calculation
Estimated First Year's Mortgage Interest                 $          5,744           $          7,421         $         7,421              $      6,111       $    6,111
Annual Borrower Income                                   $         60,000           $         60,000         $        60,000              $     60,000       $   60,000
Deductions
    Mortgage Interest2                                   $          5,744           $          5,936         $          5,936             $      4,889       $    4,889
    Annual Real Estate Taxes                             $          6,500           $          6,500         $          6,500             $      6,500       $    6,500
    Exemptions                                           $          3,800           $          3,800         $          3,800             $      3,800       $    3,800
Taxable Income                                           $         43,956           $         43,764         $     43,764                 $     44,811       $   44,811
Filing Status                                                                                                  Single                                                      X
Tax Liability                                            $          7,019           $          6,971         $      6,971                 $      7,233       $    7,233
  MCC Credit (20%)                                       $            -             $          1,484         $      1,484                 $      1,222       $    1,222
Final Tax Liability                                      $          7,019           $          5,487         $          5,487             $      6,011       $    6,011
Annual Tax Savings                                       $            -             $          1,532         $          1,532             $      1,008       $    1,008
Monthly Tax Savings                                      $            -             $            128         $            128             $         84       $       84

MONTHLY SAVINGS                                                                     $             95         $            219             $        126       $      250
TOTAL ANNUAL SAVINGS                                                                $          1,142         $          2,627             $      1,517       $    3,001

Assets Required
Required Down Payment                                    $         6,300            $         5,400          $         5,400              $      5,400       $    5,400
Estimated Closing Costs                                  $        15,000            $        15,000          $        15,000              $     15,000       $   15,000
Upfront MIP                                              $           -              $           -            $         4,714              $        -         $    4,714
MCC Fee                                                  $           -              $           500          $           500              $        500       $      500
Required Cash to Close                                   $        21,300            $        20,900          $        25,614              $     20,900       $   25,614
Allowed Seller Concessions                               $         5,400            $         5,400          $         5,400              $      5,400       $    5,400
DPAL Amount                                              $           -              $         5,400          $         5,400              $        -         $      -
Net Cash Required                                        $        15,900            $        10,100          $        14,814              $     15,500       $   20,214

CLTV                                                               98.19%                   100.00%                  100.00%                    97.00%            97.00%

1
Based on Genworth rates with a credit score of 680 - 719. Higher credit scores have lower rates. MIF's rate for 97% financing is 3.15%.
2
For MCC loans, this figure represents 80% of the total mortgage interest.

				
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