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NET TANGIBLE BENEFIT WORKSHEET

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NET TANGIBLE BENEFIT WORKSHEET Powered By Docstoc
					TANGIBLE NET BENEFIT WORKSHEET
The following worksheet may help in the determination of a borrower’s tangible net benefit as it relates to the new loan extended.

Lender: Loan Originator/Processor: Borrower Name: Property Address:

Loan Information New Loan LOAN DATE LOAN AMOUNT LOAN TERM TYPE OF LOAN (Check One) LOAN RATE PAYMENT AMOUNT PREPAYMENT PENALTY PROVISION LOAN TO VALUE DEBT TO INCOME LEVEL LOAN PURPOSE Must be specific and relate to distribution of loan proceeds.

Previous Loan

Fixed Rate

Adjustable Rate

Balloon

Fixed Rate

Adjustable Rate

Balloon

LOAN ORIGINATOR TO COMPLETE: The borrower received the following described tangible, net benefit through a refinancing of this loan or an additional loan secured by this borrower’s same property. Signature: Print: Approved By: Manager/Officer Print: See borrower’s certification attached. Date:

BORROWER CERTIFICATION: I understand that my broker and/or lender must show that I have received a reasonable net tangible benefit by refinancing this loan on my property when a new loan is made. I affirm that the net tangible benefit of my new loan has been explained and that I understand and confirm that I will receive a benefit from this transaction. I understand that there are costs associated with this transaction and my new loan will have different terms (including duration) than my existing loan(s). By refinancing my existing loan(s), the following benefits apply to me (I have checked all that applies): ___ I will obtain a lower interest rate. ___ I will obtain a lower monthly payment. ___ I will obtain a shorter loan term (ex: going from a 30-yr term to a 15-yr term). ___ I will receive cash-out from the new loan that I will use the proceeds for: ____ Medical expenses ____ Educational expenses ____ Home Improvements ____ Debt consolidation _____ Other: _____________________________________________________________________________________ ___ I will consolidate other loans and debts that I now have into a single loan ___ I will obtain a fixed rate. I currently have ____ ARM ____ I/O ____ NEGATIVE AMORT ____ BALLOON ___ I will avoid foreclosure of or cure a default on an existing mortgage loan. ___ Other (please specify): ________________________________________________________________________________

I have considered the terms of both the existing and new loans, the cost of the new loan and my personal circumstances. I have determined that it would be beneficial for me to refinance the existing loan(s) with this new loan for the reason(s) identified above. I certify that I understand the terms and the benefits of the new loan and this statement is true.

(Borrower)(Date)

(Borrower)(Date)


				
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