Broker Information
1 2 2
Borrower Information
Borrower Name Address City, State, Zip John and Mary Smith 12345 Main Street San Jose, CA 95131
Your Name Company Phone
Philip Chen
1
Home Value
Current Value of House $900,000 6.0% Annual Appreciation Rate
1 1 1 2 1
Very Important !
Options Loan
Loan Amount - First Mtg Minimum Payment Rate Payment Schedule Loan Margin Current Index Value $500,000 1.00%
Monthly
Fixed Rate Loan
Loan Amount Fixed Loan Interest Rate Term Mortgage Insurance* $500,000 6.500% 30 0.00
2.65% 4.933%
1
Second Mortgage or ELOC
Second or ELOC? Loan Amount Loan Rate
ELOC
* Typical Mortgage Insurance Factors *
80% LTV or Less 80.1% to 85% 85.1% to 90% 90.1% to 95% 0.00 0.43 0.52 0.78
$0
Combined Loan to Value 55.56%
Debt
Credit Card Balance Credit Card Rate $0 16.00%
Retirement
Investment Return 401K Match Percentage 0.00% 50.00%
Cash Flow Allocation
Approximate 5 Year Cash Flow First Cash Flow Allocation Second Cash Flow Allocation $77,528
Apply to Credit Card Debt
Investment Strategy
Loan Analysis Criteria Options Loan Amount Minimum Payment Rate Equity Line of Credit ELOC Rate Fixed Rate Loan Amount Mortgage Rate Private Mortgage Insurance Home Value Annual Appreciation Rate
$500,000 1.00% $0 0.00% $500,000 6.500% No $900,000 6.00%
Options Payment Calculations $700,000
"Options Loan" vs TRADITIONAL 30-Yr MTG
The Options Loan Payment has been calculated using the low start rate. Monthly payments for secondary financing (2nd or ELOC) have been added to show the total monthly payment.
$600,000
Options Loan 30 YR FR
$500,000
$400,000
$300,000
Cash Flow Calculations Cash Flow is calculated by subtracting the total payment for the options loan (including any secondary financing) from the traditional 30-year mortgage. For clarification on how the Options Low Start Rate payment was calculated, see the description above.
$200,000
$100,000
$0 00 02 04 06 08 10 12 14 16 18 20 22 24 26 30
28
Options Payment 30-Year Payment Options Payment 30-Year Payment Options Payment 30-Year Payment Options Payment 30-Year Payment Options Payment 30-Year Payment Cash Flow Deferred Interest Loan Balance Home Value Loan to Value $1,608 Cash Flow $3,160 Deferred Interest Loan Balance $18,626 Home Value $17,206 Loan to Value $517,206 $954,000 54% $1,729 Cash Flow $3,160 Deferred Interest Loan Balance $17,178 Home Value $17,039 Loan to Value $534,246 $1,011,240 53% $1,858 Cash Flow $3,160 Deferred Interest Loan Balance $15,622 Home Value $16,735 Loan to Value $550,981 $1,071,914 51% $1,998 Cash Flow $3,160 Deferred Interest Loan Balance $13,950 Home Value $16,291 Loan to Value $567,272 $1,136,229 50%
$2,148 $3,160 $12,152 $15,690 $582,962 $1,204,403 48%
End of Year 4 End of Year 3
End of Year 5
End of Year 2 End of Year 1
Put the "Options" Cash Flow to Work for You !
5 Year Cash Flow
Options Cash Flow Analysis Year 1 Year 2 Year 3 Year 4 Year 5 5 Year Totals Traditional 30 Year Fixed Rate Mortgage Annual Payments $37,924 $37,924 $37,924 $37,924 $37,924 $189,620 Options Loan Annual Payments $19,298 $20,746 $22,302 $23,974 $25,772 $112,092 Annual Options Loan Cash Flow $18,626 $17,178 $15,622 $13,950 $12,152 $77,528
All Payments shown above are total annual payments. Cash Flow is determined by subtracting the minimum "Options" loan payment, including secondary financing, from the Traditional 30-Year Fixed Rate Mortgage payment.
Use the Cash Flow to "Boom" any Secondary Financing !
Second Mortgage Analysis End of Year 1 End of Year 2 End of Year 3 End of Year 4 Balance End of Year 5 Standard ELOC Loan Balance @ 0.00% $0 $0 $0 $0 $0 Options ELOC Loan Balance $0 $0 $0 $0 $0
The ELOC Annual Payments shown above assume an Interest Only Payment for the first 10 years.
Use the Cash Flow to Pay Off Credit Card Debt
Normal Credit Card Balance $0.00 $0.00 $0.00 $0.00 $0.00 Options Credit Card Balance $0.00 $0.00 $0.00 $0.00 $0.00 Options Interest Savings $0 $0 $0 $0 $0
End Of Year Balances Year 1 Year 2 Year 3 Year 4 Year 5
Use the Cash Flow for Investing for the Future
Options Investment Analysis Year 1 Year 2 Year 3 Year 4 Year 5 Years 6-10 Years 11-15 Years 16-20 Years 21-25 Years 26-30 Normal Savings Account @ 1.00% $18,711 $36,157 $52,214 $66,752 $79,631 $83,712 $88,002 $92,512 $97,253 $102,237 Investment Account @ 0.00% $18,626 $35,804 $51,426 $65,376 $77,528 $77,528 $77,528 $77,528 $77,528 $77,528 401k Investment Account @ 0.00% $27,939 $53,706 $77,140 $98,064 $116,292 $116,292 $116,292 $116,292 $116,292 $116,292
The investment scenarios above assume payments into interest bearing accounts for up to five years. After five years, no additional funds are added and the investment grows based on a consistent rate of return. The 401k investment account assumes a 50% company match.
Options payments assume maximum annual payment increase with a constant index. Actual results may vary. The Options start rate remains in effect for 1 month. The APR is subject to increase after the loan closes. This is not a commitment to lend. Standard credit card payment is assumed to be 3% of the balance.
The Options Loan
Borrower : John and Mary Smith
1st Mtg Interest Rate 7.583% 7.583% 7.583% 7.583% 7.583% 7.583% 7.583% 7.583% 7.583% 7.583% 7.583% 7.583% 7.583% 7.583% 7.583% 7.583% 7.583% 7.583% 7.583% 7.583% 7.583% 7.583% 7.583% 7.583% 7.583% 7.583% 7.583% 7.583% 7.583% 7.583% 1st Mortgage Payment
(per Month)
Year
ELOC Mortgage Payment
(per Month)
Combined Mortgage Payment
(per Month)
Total Amount Paid
(Annually)
Total Principal Reduction
(Annually)
End of Year Balance
(1st Mtg + ELOC)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
$1,608 $1,729 $1,858 $1,998 $2,148 $2,309 $2,482 $2,668 $2,868 $3,083 $5,231 $5,231 $5,231 $5,231 $5,231 $5,231 $5,231 $5,231 $5,231 $5,231 $5,231 $5,231 $5,231 $5,231 $5,231 $5,231 $5,231 $5,231 $5,231 $5,231
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$1,608 $1,729 $1,858 $1,998 $2,148 $2,309 $2,482 $2,668 $2,868 $3,083 $5,231 $5,231 $5,231 $5,231 $5,231 $5,231 $5,231 $5,231 $5,231 $5,231 $5,231 $5,231 $5,231 $5,231 $5,231 $5,231 $5,231 $5,231 $5,231 $5,231
$19,298 $40,044 $62,346 $86,320 $112,092 $139,798 $169,581 $201,598 $236,016 $273,016 $335,789 $398,561 $461,334 $524,107 $586,880 $649,653 $712,426 $775,199 $837,972 $900,744 $963,517 $1,026,290 $1,089,063 $1,151,836 $1,214,609 $1,277,382 $1,340,155 $1,402,927 $1,465,700 $1,528,473
($17,206) ($17,039) ($16,735) ($16,291) ($15,690) ($14,910) ($13,928) ($12,719) ($11,253) ($9,501) $14,333 $15,459 $16,672 $17,982 $19,394 $20,916 $22,559 $24,330 $26,241 $28,301 $30,523 $32,920 $35,505 $38,293 $41,300 $44,543 $48,040 $51,812 $55,881 $60,269
$517,206 $534,246 $550,981 $567,272 $582,962 $597,872 $611,800 $624,518 $635,772 $645,273 $630,940 $615,481 $598,809 $580,827 $561,433 $540,517 $517,958 $493,628 $467,387 $439,086 $408,563 $375,643 $340,138 $301,845 $260,545 $216,002 $167,962 $116,150 $60,269 $0
First Mortgage Amount Second Mortgage Amount Monthly or Bi-Weekly Loan
$500,000 $0 Monthly
Payment Factor Index Value Loan Margin
1.00% 4.933% 2.65%
Prepared by Philip Chen
0 0
Payments assume maximum annual payment increase each year and assume a constant index. Actual Results may vary. May affect amortization schedule. Interest rates will change. Consult your regulation Z. This is not an offer to lend. Equal Opportunity Lender. For Illustration purposes only.