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rent to own

VIEWS: 1,090 PAGES: 19

									Rent vs Own Analysis
1040 East Maple Street, Reston, VA 22070




                                     Home Buyer
                                    Mrs. Trish Murray
                                  2034 Western Avenue
                                  East Town, VA 22091




                        Finance presentation by
                                     Anthony S. Mills
                                           AMI
                                    433 Carlsile Drive
                                   Herndon, VA 20170
                                     (703) 555-3855




      Presented Saturday, June 10, 2000 by Anthony S. Mills, of AMI, 433 Carlsile Drive,
              Herndon, VA 20170, Office (703) 555-3855, Fax (703) 555-3856.
Rent vs. Own Analysis
Anthony S. Mills, AMI, 433 Carlsile Drive, Herndon, VA   20170, phone (703) 555-3855



                                          Trish Murray
                                      1040 East Maple Street
                                        Reston, VA 22070


 Loan Information                                        Annual Rates (assumptions):
 Program                   FHA 1 year ARM                Real Estate Appreciation                   6%
 Sales Price                     $150,000                Inflation                                  4%
 Rate                              6.000%                Incremental Tax Rate                      28%
 Points                      0.500 + 1.000               Alternative Investment                     5%
 Loan Amount                     $149,899                Cost to Sell Property                      6%
 Loan-To-Value                     99.93%


 Initial Monthly Payment                                 Cash Required to Close
 Principal & Interest                   $899             Down Payment                            $3,400
 Property Tax                            127             Closing Costs                            6,324
 Hazard Insurance                         31             Prepaid & Escrow                         1,574
 FHA Mort. Ins.                           61             Total Cash Required                    $11,298
 Total                                $1,118
                                                         Cash Reserves Required                  $1,118


                             First Year Average Cash Flow
                             Monthly Payment Cost         $-1,118
                             Tax Benefits                     244
                             Monthly Cash Flow              $-873
                             Rent Savings                     900
                             Equity Gain                      858
                             Investment Cost                  -50
                             Monthly Economic Gain           $835


                                    Economic Value Forecast
      Initial Payment          Year 15 Payment           Net Cost 15 Years             Net Cost 30 Years
 Rent            $900                   $2,035                   $177,591                      $415,691
 Own           $1,118                   $1,141                     $-8,479                    $-205,627
                                       Breakeven in 2 years

Payments shown above are in "then-year" dollars. Net costs are shown in "current-year"
dollars. For more details on this calculation, please contact Anthony S. Mills.




          Presented Saturday, June 10, 2000 by Anthony S. Mills, of AMI, 433 Carlsile Drive,
                  Herndon, VA 20170, Office (703) 555-3855, Fax (703) 555-3856.
Rent vs. Own Analysis
Anthony S. Mills, AMI, 433 Carlsile Drive, Herndon, VA   20170, phone (703) 555-3855



                                          Trish Murray
                                      1040 East Maple Street
                                        Reston, VA 22070


 Loan Information                                        Annual Rates (assumptions):
 Program                  FHA 30 year fixed              Real Estate Appreciation                   6%
 Sales Price                     $150,000                Inflation                                  4%
 Rate                              8.000%                Incremental Tax Rate                      28%
 Points                      0.000 + 1.000               Alternative Investment                     5%
 Loan Amount                     $149,899                Cost to Sell Property                      6%
 Loan-To-Value                     99.93%


 Initial Monthly Payment                                 Cash Required to Close
 Principal & Interest                 $1,100             Down Payment                            $3,400
 Property Tax                            127             Closing Costs                            5,574
 Hazard Insurance                         31             Prepaid & Escrow                         1,699
 FHA Mort. Ins.                           61             Total Cash Required                    $10,673
 Total                                $1,319
                                                         Cash Reserves Required                  $1,319


                             First Year Average Cash Flow
                             Monthly Payment Cost         $-1,319
                             Tax Benefits                     314
                             Monthly Cash Flow            $-1,005
                             Rent Savings                     900
                             Equity Gain                      809
                             Investment Cost                  -53
                             Monthly Economic Gain           $652


                                    Economic Value Forecast
      Initial Payment          Year 15 Payment           Net Cost 15 Years             Net Cost 30 Years
 Rent            $900                   $2,035                   $177,591                      $415,691
 Own           $1,319                   $1,345                     $25,004                    $-129,821
                                       Breakeven in 3 years

Payments shown above are in "then-year" dollars. Net costs are shown in "current-year"
dollars. For more details on this calculation, please contact Anthony S. Mills.




          Presented Saturday, June 10, 2000 by Anthony S. Mills, of AMI, 433 Carlsile Drive,
                  Herndon, VA 20170, Office (703) 555-3855, Fax (703) 555-3856.
Annual Rent vs. Own Comparison
Anthony S. Mills, AMI, 433 Carlsile Drive, Herndon, VA   20170, phone (703) 555-3855



                                          Trish Murray
                                      1040 East Maple Street
                                        Reston, VA 22070
                                         FHA 1 year ARM
                                     Loan Amount of $149,899
                                      Interest Rate of 6.000%

Year    Rent Payment              Own Payment                  Net Rent Cost           Net Own Cost
1                   $900                   $1,118                       $8,654                  $18,094
2                    954                    1,119                       19,305                   18,552
3                  1,011                    1,120                       30,157                   18,799
4                  1,072                    1,121                       41,213                   18,798
5                  1,136                    1,123                       52,479                   18,514
6                  1,204                    1,124                       63,959                   17,909
7                  1,277                    1,125                       75,655                   16,945
8                  1,353                    1,127                       87,574                   15,584
9                  1,434                    1,129                       99,718                   13,787
10                 1,521                    1,130                      112,094                   11,513
11                 1,612                    1,132                      124,704                    8,721
12                 1,708                    1,134                      137,554                    5,369
13                 1,811                    1,136                      150,649                    1,415
14                 1,920                    1,138                      163,993                   -3,186
15                 2,035                    1,141                      177,591                   -8,479
16                 2,157                    1,143                      191,449                  -14,510
17                 2,286                    1,146                      205,571                  -21,326
18                 2,423                    1,148                      219,962                  -28,978
19                 2,569                    1,151                      234,628                  -37,514
20                 2,723                    1,154                      249,574                  -46,985
21                 2,886                    1,158                      264,805                  -57,446
22                 3,060                    1,161                      280,328                  -68,950
23                 3,243                    1,165                      296,147                  -81,554
24                 3,438                    1,169                      312,269                  -95,315
25                 3,644                    1,173                      328,699                 -110,291
26                 3,863                    1,177                      345,444                 -126,545
27                 4,094                    1,182                      362,509                 -144,140
28                 4,340                    1,187                      379,901                 -163,139
29                 4,601                    1,192                      397,626                 -183,610
30                 4,877                    1,171                      415,691                 -205,627

Payments shown above are in actual, "then-year" dollars. Net costs are shown in
"current-year" dollars. For further explanation of assumptions and calculations, please
contact Anthony S. Mills.




          Presented Saturday, June 10, 2000 by Anthony S. Mills, of AMI, 433 Carlsile Drive,
                  Herndon, VA 20170, Office (703) 555-3855, Fax (703) 555-3856.
Annual Rent vs. Own Comparison
Anthony S. Mills, AMI, 433 Carlsile Drive, Herndon, VA   20170, phone (703) 555-3855



                                          Trish Murray
                                      1040 East Maple Street
                                        Reston, VA 22070
                                        FHA 30 year fixed
                                     Loan Amount of $149,899
                                      Interest Rate of 8.000%

Year    Rent Payment              Own Payment                  Net Rent Cost           Net Own Cost
1                   $900                   $1,319                       $8,654                  $19,814
2                    954                    1,320                       19,305                   22,418
3                  1,011                    1,322                       30,157                   24,822
4                  1,072                    1,323                       41,213                   26,991
5                  1,136                    1,325                       52,479                   28,893
6                  1,204                    1,326                       63,959                   30,491
7                  1,277                    1,328                       75,655                   31,749
8                  1,353                    1,330                       87,574                   32,630
9                  1,434                    1,332                       99,718                   33,098
10                 1,521                    1,334                      112,094                   33,113
11                 1,612                    1,336                      124,704                   32,637
12                 1,708                    1,338                      137,554                   31,630
13                 1,811                    1,340                      150,649                   30,050
14                 1,920                    1,343                      163,993                   27,856
15                 2,035                    1,345                      177,591                   25,004
16                 2,157                    1,348                      191,449                   21,451
17                 2,286                    1,351                      205,571                   17,150
18                 2,423                    1,353                      219,962                   12,056
19                 2,569                    1,356                      234,628                    6,120
20                 2,723                    1,360                      249,574                     -706
21                 2,886                    1,363                      264,805                   -8,473
22                 3,060                    1,366                      280,328                  -17,233
23                 3,243                    1,370                      296,147                  -27,040
24                 3,438                    1,374                      312,269                  -37,949
25                 3,644                    1,377                      328,699                  -50,015
26                 3,863                    1,381                      345,444                  -63,297
27                 4,094                    1,386                      362,509                  -77,856
28                 4,340                    1,390                      379,901                  -93,752
29                 4,601                    1,394                      397,626                 -111,050
30                 4,877                    1,373                      415,691                 -129,821

Payments shown above are in actual, "then-year" dollars. Net costs are shown in
"current-year" dollars. For further explanation of assumptions and calculations, please
contact Anthony S. Mills.




          Presented Saturday, June 10, 2000 by Anthony S. Mills, of AMI, 433 Carlsile Drive,
                  Herndon, VA 20170, Office (703) 555-3855, Fax (703) 555-3856.
Rent vs. Own Analysis
explanation of calculation

The attached Rent vs. Own Analysis is intended to show the true financial value of
home ownership for a specific scenario. Since the calculations and rationale are
somewhat complex, this sheet is included with the Analysis printout, to explain the
information presented in each section.

Loan Information
Shows the details of the mortgage financing upon which the analysis calculations are
based.

Annual Rates
These are the assumptions upon which the Analysis is based. The first rate, "Real
Estate Appreciation," is used in the calculations to estimate the increases that will
occur, over time, to home values, rent costs, property taxes, and homeowner's
insurance costs. The next figure, for "Inflation", is used to relate figures for money in
different years. The effect of inflation is often neglected in financial calculations, but it
is vital for long term considerations and is included in our calculations. Next, the
"Incremental Tax Rate", also known as a tax bracket, is used to estimate the tax
savings you will receive for your deductible payments for property tax and mortgage
loan interest and points. It is also used to find the amount of income tax that you would
have to pay on alternative investments. The "Alternative Investment" figure shows the
returns that you could reasonably expect from your money if you chose to invest it in
interest bearing bank accounts, bonds, or stocks. Finally, the "Cost to Sell Property"
represents the one-time cost you will incur when you sell your home. This cost comes
from real estate agent commissions as well as any closing costs that you might pay as
the seller.

Inital Monthly Payment
Breaks out the payments you will make in the first month after you purchase your
home.

Cash Required to Close
Describes the Down Payment, Closing Costs, and Prepaid & Escrow fees which you
would pay at closing. This represents your total cash investment in your property.

First Year Avergage Cash Flow
Presents your home investment from the point of view of cash flow and value during
the first year. First, your monthly payment is presented as a negative number,
representing the average amount you will pay during the first year. Because you will
now own a home, you will receive a tax break for deductible interest and property tax
payments. This amount is therefore shown as a positive cash flow; you will actually be
able to increase your paycheck by this amount by adjusting your witholding
information on the IRS Form W-4 that you provide to your employer. The impact, if
any, of rental income and maintenance is also shown. Adding these numbers together
gives your total "Monthly Cash Flow", which is shown as a subtotal. You may compare

         Presented Saturday, June 10, 2000 by Anthony S. Mills, of AMI, 433 Carlsile Drive,
                 Herndon, VA 20170, Office (703) 555-3855, Fax (703) 555-3856.
this cash flow number with what you would have been paying every month if you had
continued to rent. Thus, your "Rent Savings" are added as a positive number.
The remaining numbers deal with the investment value of your home. Every year, the
value of the home may be expected to increase. Also, part of each monthly payment is
applied to the principal value of your loan. Adding the monthly appreciation and
principal gives the amount by which your equity in your home increases. This increase
is shown as "Equity Gain". Finally, we must account for the "Investment Cost", or time
value of the money which you will invest at closing. This is the interest which you would
have received if you had chosen not to purchase and had instead placed the money in
an alternative investment. This amount is subtracted from your investment returns.
The final total, "Monthly Economic Gain", represents your net gain (or cost, if negative)
due to buying a house, as opposed to renting. In other words, this is the amount by
which your personal wealth will increase every month while you own your home.

Economic Value Forecast
Demonstrates the long-term benefits of owning a home. The two rows allow you to
compare cost and savings figures for both renting and owning. The first column shows
the monthly payments for the first year. The next column gives the same figures for
year 15, showing the actual dollar amounts you could expect to pay. Note that these
are inflated dollars, or the actual cash amounts you would be paying. The last two
columns show the net comparative economic cost (or simply "net cost") for two
different years. These are the bottom-line figures upon which you should base your
home buying decision. Therefore, the economic cost and its calculation deserve some
explanation.
In evaluating a financial option, there are two major considerations. The first is cash
flow. You must be able to afford the payments on the home. For this, you will want to
compare the "Monthly Cash Flow" figure as described above with your current monthly
rental payments.
The second consideration is net cost. This is the difference in money that you will see
at the end of some period, depending upon the investment decision you make. When
you purchase a home, you will typically begin by paying more in down payment for the
home than you would pay in rental deposits. Moreover, your initial monthly payments
may be higher when you own than when you rent. Much of this difference will be
returned to you in the form of tax deductions. However, over time, your monthly home
ownership payments will actually become less than the rent you would otherwise be
paying. This is because most of your home payment is determined by an amortization
schedule and is protected from both inflation and property appreciation. (Eventually,
after you have paid off your mortgage, your home ownership payments will consist
only of taxes and insurance.) Rental costs, however, tend to increase over time at
about the same rate as property values.
Home ownership has other financial benefits. Part of your payment, each month, goes
to pay the principal amount of your loan. This, plus the appreciation of your property,
increases your equity. This equity becomes cash when you sell (or refinance) your
home, less any selling costs. Another major consideration in the net cost computations
is the "Alternative Investment" rate. Since home ownership usually requires a higher
down payment and higher initial monthly payments, it is only fair to assume that, if you
didn't purchase a home, you would invest the money in some other form. Thus, the
Rent vs. Own calculation includes the effect of this "Investment Cost" by subtracting it
         Presented Saturday, June 10, 2000 by Anthony S. Mills, of AMI, 433 Carlsile Drive,
                 Herndon, VA 20170, Office (703) 555-3855, Fax (703) 555-3856.
from the net cost for renting. Eventually, as stated above, your home ownership
payments will actually become less than the rental payments. At this point, the
alternative investment income is subtracted from the net cost of home ownership. The
final consideration in the net values is inflation. Since the home ownership costs are
incurred over a period of many years, the net cost figures are presented in constant
2000 dollars. This is intended to allow you to see the benefits of home ownership,
using dollar values with which you are familiar.
Now that we've covered all of the rationales and the method involved in the
calculation, let's look at the actual Net Costs given on the analysis. You will want to
compare the Rent and Own figures. Where the Rent figures are higher than the Own
figures, that represents the actual economic gain that you realize from owning your
home.
The last piece of information presented is the "breakeven" period. This is simply the
point at which your net costs as a homeowner become less than your net costs as a
renter. In other words, if you expect to own the home for at least that number of years,
then you would do better to buy than to rent.
If you wish, you may also request a Annual Rent vs. Own Comparison, which will allow
you to see these payment and cost figures for each year of your loan.




         Presented Saturday, June 10, 2000 by Anthony S. Mills, of AMI, 433 Carlsile Drive,
                 Herndon, VA 20170, Office (703) 555-3855, Fax (703) 555-3856.
Comparison of Loan Programs
Anthony S. Mills, AMI, 433 Carlsile Drive,Herndon, VA   20170, phone (703) 555-3855




                  Program                     FHA 1 year ARM              FHA 30 year fixed
                  Rate                                6.000%                        8.000%
                  Points                        0.500 + 1.000                 0.000 + 1.000
                  Loan To Value                       99.93%                        99.93%


                  Initial Costs                               6,324                     5,574

                  Year 1                                    17,837                     19,503
                  Year 2                                    29,351                     33,432
                  Year 3                                    40,864                     47,361
                  Year 4                                    52,378                     61,290
                  Year 5                                    63,891                     75,219
                  Year 6                                    75,405                     89,148
                  Year 7                                    86,918                    103,077
                  Year 8                                    98,432                    117,006
                  Year 9                                   109,945                    130,935
                  Year 10                                  121,459                    144,864
                  Year 11                                  132,972                    158,793
                  Year 12                                  144,486                    172,722
                  Year 13                                  155,999                    186,651
                  Year 14                                  167,513                    200,580
                  Year 15                                  179,026                    214,509

                  Life of Loan                             351,726                    423,447


This chart provides a cumulative total of closing costs plus principal, interest, and mortgage
insurance (if applicable) paid during the first 15 years, and over the life of the loan, for the
loan programs shown above. This comparison will help you to evaluate the benefits of each
program over a specific period of time. For example:

         If you estimate that you will only own your home for four years, then the
         lowest cumulative payment as of Year 4 would indicate the program that
         offers the lowest total costs over that period of time.

All adjustable loan program payments are calculated assuming that the index rates which
limit the adjustments will remain at their current values (accrual rate).




           Presented Saturday, June 10, 2000 by Anthony S. Mills, of AMI, 433 Carlsile Drive,
                   Herndon, VA 20170, Office (703) 555-3855, Fax (703) 555-3856.
Good Faith Estimate
Prep. By:       Anthony S. Mills                             Program:                  FHA 1 year ARM
Of:             AMI                                          At a note rate of:                6.000%
                433 Carlsile Drive                           Points:                     0.500 + 1.000
                Herndon, VA 20170                            Sales Price:                     $150,000
                                                             Loan Amount:                     $149,899
Borrower:       Trish Murray                                 Base Loan Amt.:                     $146,600
Property:       1040 East Maple Street                       Down Payment:                         $3,400
                Reston, VA 22070                             Loan-To-Value:                       99.93%


  These estimates are provided pursuant to the Real Estate Settlement Procedures Act of 1974, as
  amended (RESPA). The fees listed are estimates; the actual charges, rates, and points may be
  more or less. Additional information can be found in the HUD special information booklet, which is
  to be provided to you by your mortgage broker or lender. The undersigned acknowledges receipt
  of the booklet “settlement costs,” and if applicable, the consumer handbook on ARM mortgages.

Estimated Closing Costs                                     Monthly Payments
801      Loan Origination Fee: 1.0%       $1,466            Principal & Interest                     $899
802      Loan Discount: 0.5%                 749            Property Tax                              127
902      Financed FHA Mort. Ins.          [3,299]           Hazard Insurance                           31
803      Appraisal Fee                       300            FHA Mort. Ins.                             61
804      Credit Report                         57           Total Monthly Payment                  $1,118
810      Tax Service Fee                       72
1105     Document Preparation                285            Cash at Closing
1107     Attorney's Fees                     400            Down Payment                           $3,400
1108     Lender's Title Insurance            350            Closing Costs                           6,324
1201     Recording Fees                        50           Prepaid & Escrow                        1,574
1201     Recording Tax                       165            Total Cash Required                   $11,298
1202     Transfer Tax                      2,219
1301     Survey                              150            Cash Reserves Required                 $1,118
1302     Pest/Health Inspection                60
Total Closing Costs                       $6,324

Prepaid Closing Costs and Escrows
901      15 Days Prepaid Interest           $375
1003     4 Months Property Tax               508
903      12 Months Hazard Insurance          375
1004     2 Months Property Tax               254
1001     2 Months Hazard Insurance            62
Total Prepaids & Esc.                     $1,574

                        I/we acknowledge receiving a copy of the above information.


Lender:                                  Applicant:                                   Date:


                                         Applicant:                                   Date:




            Presented Saturday, June 10, 2000 by Anthony S. Mills, of AMI, 433 Carlsile Drive,
                    Herndon, VA 20170, Office (703) 555-3855, Fax (703) 555-3856.
Good Faith Estimate
Prep. By:       Anthony S. Mills                             Program:                 FHA 30 year fixed
Of:             AMI                                          At a note rate of:                8.000%
                433 Carlsile Drive                           Points:                     0.000 + 1.000
                Herndon, VA 20170                            Sales Price:                    $150,000
                                                             Loan Amount:                    $149,899
Borrower:       Trish Murray                                 Base Loan Amt.:                     $146,600
Property:       1040 East Maple Street                       Down Payment:                         $3,400
                Reston, VA 22070                             Loan-To-Value:                       99.93%


  These estimates are provided pursuant to the Real Estate Settlement Procedures Act of 1974, as
  amended (RESPA). The fees listed are estimates; the actual charges, rates, and points may be
  more or less. Additional information can be found in the HUD special information booklet, which is
  to be provided to you by your mortgage broker or lender. The undersigned acknowledges receipt
  of the booklet “settlement costs,” and if applicable, the consumer handbook on ARM mortgages.

Estimated Closing Costs                                     Monthly Payments
801      Loan Origination Fee: 1.0%       $1,466            Principal & Interest                   $1,100
902      Financed FHA Mort. Ins.          [3,299]           Property Tax                              127
803      Appraisal Fee                       300            Hazard Insurance                           31
804      Credit Report                         57           FHA Mort. Ins.                             61
810      Tax Service Fee                       72           Total Monthly Payment                  $1,319
1105     Document Preparation                285
1107     Attorney's Fees                     400            Cash at Closing
1108     Lender's Title Insurance            350            Down Payment                           $3,400
1201     Recording Fees                        50           Closing Costs                           5,574
1201     Recording Tax                       165            Prepaid & Escrow                        1,699
1202     Transfer Tax                      2,219            Total Cash Required                   $10,673
1301     Survey                              150
1302     Pest/Health Inspection                60           Cash Reserves Required                 $1,319
Total Closing Costs                       $5,574

Prepaid Closing Costs and Escrows
901      15 Days Prepaid Interest           $500
1003     4 Months Property Tax               508
903      12 Months Hazard Insurance          375
1004     2 Months Property Tax               254
1001     2 Months Hazard Insurance            62
Total Prepaids & Esc.                     $1,699

                        I/we acknowledge receiving a copy of the above information.


Lender:                                  Applicant:                                   Date:


                                         Applicant:                                   Date:




            Presented Saturday, June 10, 2000 by Anthony S. Mills, of AMI, 433 Carlsile Drive,
                    Herndon, VA 20170, Office (703) 555-3855, Fax (703) 555-3856.
Disclosure Statement
Anthony S. Mills, AMI, 433 Carlsile Drive, Herndon, VA      20170, phone (703) 555-3855



                                               June 10, 2000


                                                  Borrower
                                                 Trish Murray


                                                Property
                                          1040 East Maple Street
                                            Reston, VA 22070


                                          FHA 1 year ARM
                                   6.000% with 0.500 + 1.000 points

Annual Percentage Rate            Finance Charge                Amount Financed             Total of Payments
  (the cost of your credit         (the dollar amount the         (the amount of credit     (the amount you will pay
     as a yearly rate)              credit will cost you)          provided to you or on     when you make all pay-
                                                                    your behalf)              ments as scheduled)


           6.894                     $194,259.91                    $143,427.76                 $337,687.67


Your payment schedule will be:

        Number               Principal                Mtg. Insurance                  Total          Due Monthly
     of payments             & Interest                 Payment                      Payment          Beginning
           12                $898.72                         $60.74                   $959.46               8/1/00
           12                 898.72                          59.97                    958.69               8/1/01
           12                 898.72                          59.15                    957.87               8/1/02
           12                 898.72                          58.28                    957.00               8/1/03
           12                 898.72                          57.36                    956.08               8/1/04
           12                 898.72                          56.38                    955.10               8/1/05
           12                 898.72                          55.34                    954.06               8/1/06
           12                 898.72                          54.24                    952.96               8/1/07
           12                 898.72                          53.07                    951.79               8/1/08
           12                 898.72                          51.82                    950.54               8/1/09
           12                 898.72                          50.50                    949.22               8/1/10
           12                 898.72                          49.10                    947.82               8/1/11
           12                 898.72                          47.61                    946.33               8/1/12
           12                 898.72                          46.03                    944.75               8/1/13
           12                 898.72                          44.35                    943.07               8/1/14
           12                 898.72                          42.56                    941.28               8/1/15
           12                 898.72                          40.67                    939.39               8/1/16
           12                 898.72                          38.66                    937.38               8/1/17
           12                 898.72                          36.53                    935.25               8/1/18
           12                 898.72                          34.27                    932.99               8/1/19
           12                 898.72                          31.86                    930.58               8/1/20
           12                 898.72                          29.31                    928.03               8/1/21
           12                 898.72                          26.60                    925.32               8/1/22
           12                 898.72                          23.72                    922.44               8/1/23

            Presented Saturday, June 10, 2000 by Anthony S. Mills, of AMI, 433 Carlsile Drive,
                    Herndon, VA 20170, Office (703) 555-3855, Fax (703) 555-3856.
        12                 898.72                    20.67                919.39              8/1/24
        12                 898.72                    17.42                916.14              8/1/25
        12                 898.72                    13.98                912.70              8/1/26
        12                 898.72                    10.33                909.05              8/1/27
        12                 898.72                     6.44                905.16              8/1/28
        11                 898.72                     2.32                901.04              8/1/29
         1                 895.83                     2.32                898.15              7/1/30



Required by federal law and Federal Reserve Regulation Z. Real property transaction
secured by mortgage lien on dwelling.




         Presented Saturday, June 10, 2000 by Anthony S. Mills, of AMI, 433 Carlsile Drive,
                 Herndon, VA 20170, Office (703) 555-3855, Fax (703) 555-3856.
Disclosure Statement
Anthony S. Mills, AMI, 433 Carlsile Drive, Herndon, VA       20170, phone (703) 555-3855



                                                June 10, 2000


                                                   Borrower
                                                  Trish Murray


                                                 Property
                                           1040 East Maple Street
                                             Reston, VA 22070


                                           FHA 30 year fixed
                                     8.000% with 0.000 + 1.000 point

Annual Percentage Rate             Finance Charge                Amount Financed            Total of Payments
  (the cost of your credit          (the dollar amount the         (the amount of credit    (the amount you will pay
     as a yearly rate)               credit will cost you)          provided to you or on    when you make all pay-
                                                                     your behalf)             ments as scheduled)


           8.888                      $266,955.47                    $144,052.34                $411,007.81


Your payment schedule will be:

        Number                Principal                Mtg. Insurance                  Total         Due Monthly
     of payments              & Interest                 Payment                      Payment         Beginning
           12                $1,099.90                        $60.85                $1,160.75               8/1/00
           12                 1,099.90                         60.32                 1,160.22               8/1/01
           12                 1,099.90                         59.75                 1,159.65               8/1/02
           12                 1,099.90                         59.13                 1,159.03               8/1/03
           12                 1,099.90                         58.46                 1,158.36               8/1/04
           12                 1,099.90                         57.73                 1,157.63               8/1/05
           12                 1,099.90                         56.94                 1,156.84               8/1/06
           12                 1,099.90                         56.09                 1,155.99               8/1/07
           12                 1,099.90                         55.16                 1,155.06               8/1/08
           12                 1,099.90                         54.16                 1,154.06               8/1/09
           12                 1,099.90                         53.07                 1,152.97               8/1/10
           12                 1,099.90                         51.90                 1,151.80               8/1/11
           12                 1,099.90                         50.63                 1,150.53               8/1/12
           12                 1,099.90                         49.25                 1,149.15               8/1/13
           12                 1,099.90                         47.76                 1,147.66               8/1/14
           12                 1,099.90                         46.14                 1,146.04               8/1/15
           12                 1,099.90                         44.39                 1,144.29               8/1/16
           12                 1,099.90                         42.49                 1,142.39               8/1/17
           12                 1,099.90                         40.44                 1,140.34               8/1/18
           12                 1,099.90                         38.22                 1,138.12               8/1/19
           12                 1,099.90                         35.81                 1,135.71               8/1/20
           12                 1,099.90                         33.20                 1,133.10               8/1/21
           12                 1,099.90                         30.37                 1,130.27               8/1/22
           12                 1,099.90                         27.31                 1,127.21               8/1/23

            Presented Saturday, June 10, 2000 by Anthony S. Mills, of AMI, 433 Carlsile Drive,
                    Herndon, VA 20170, Office (703) 555-3855, Fax (703) 555-3856.
        12               1,099.90                    24.00              1,123.90              8/1/24
        12               1,099.90                    20.41              1,120.31              8/1/25
        12               1,099.90                    16.53              1,116.43              8/1/26
        12               1,099.90                    12.32              1,112.22              8/1/27
        12               1,099.90                     7.76              1,107.66              8/1/28
        11               1,099.90                     2.83              1,102.73              8/1/29
         1               1,102.67                     2.83              1,105.50              7/1/30



Required by federal law and Federal Reserve Regulation Z. Real property transaction
secured by mortgage lien on dwelling.




         Presented Saturday, June 10, 2000 by Anthony S. Mills, of AMI, 433 Carlsile Drive,
                 Herndon, VA 20170, Office (703) 555-3855, Fax (703) 555-3856.
Annual Amortization Table
Anthony S. Mills, AMI, 433 Carlsile Drive, Herndon, VA   20170, phone (703) 555-3855




                                           FHA 1 year ARM
                                       Loan Amount of $149,899
                                        Interest Rate of 6.000%

              Avg. Monthly                    Annual                     Annual        Remaining
  Year         Payment                       Principal                  Interest        Balance

    1               $898.72                   $1,840.80                $8,943.84         $148,057.70
    2                898.72                    1,954.33                 8,830.31          146,103.37
    3                898.72                    2,074.88                 8,709.76          144,028.49
    4                898.72                    2,202.87                 8,581.77          141,825.62
    5                898.72                    2,338.72                 8,445.92          139,486.90
    6                898.72                    2,482.98                 8,301.66          137,003.92
    7                898.72                    2,636.11                 8,148.53          134,367.81
    8                898.72                    2,798.71                 7,985.93          131,569.10
    9                898.72                    2,971.32                 7,813.32          128,597.78
   10                898.72                    3,154.58                 7,630.06          125,443.20
   11                898.72                    3,349.16                 7,435.48          122,094.04
   12                898.72                    3,555.73                 7,228.91          118,538.31
   13                898.72                    3,775.05                 7,009.59          114,763.26
   14                898.72                    4,007.87                 6,776.77          110,755.39
   15                898.72                    4,255.05                 6,529.59          106,500.34
   16                898.72                    4,517.52                 6,267.12          101,982.82
   17                898.72                    4,796.14                 5,988.50           97,186.68
   18                898.72                    5,091.96                 5,692.68           92,094.72
   19                898.72                    5,406.03                 5,378.61           86,688.69
   20                898.72                    5,739.46                 5,045.18           80,949.23
   21                898.72                    6,093.44                 4,691.20           74,855.79
   22                898.72                    6,469.27                 4,315.37           68,386.52
   23                898.72                    6,868.29                 3,916.35           61,518.23
   24                898.72                    7,291.91                 3,492.73           54,226.32
   25                898.72                    7,741.66                 3,042.98           46,484.66
   26                898.72                    8,219.15                 2,565.49           38,265.51
   27                898.72                    8,726.10                 2,058.54           29,539.41
   28                898.72                    9,264.29                 1,520.35           20,275.12
   29                898.72                    9,835.68                   948.96           10,439.44
   30                898.48                   10,439.44                   342.31                0.00


This chart provides total annual principal and interest payments during the term of the loan
program shown. All adjustable loan program payments are calculated assuming that the
index rates which limit the adjustments will remain at their current values (accrual rate).




           Presented Saturday, June 10, 2000 by Anthony S. Mills, of AMI, 433 Carlsile Drive,
                   Herndon, VA 20170, Office (703) 555-3855, Fax (703) 555-3856.
Annual Amortization Table
Anthony S. Mills, AMI, 433 Carlsile Drive, Herndon, VA   20170, phone (703) 555-3855




                                           FHA 30 year fixed
                                       Loan Amount of $149,899
                                        Interest Rate of 8.000%

              Avg. Monthly                    Annual                     Annual        Remaining
  Year         Payment                       Principal                  Interest        Balance

    1             $1,099.90                   $1,252.18               $11,946.62         $148,646.32
    2              1,099.90                    1,356.09                11,842.71          147,290.23
    3              1,099.90                    1,468.65                11,730.15          145,821.58
    4              1,099.90                    1,590.56                11,608.24          144,231.02
    5              1,099.90                    1,722.58                11,476.22          142,508.44
    6              1,099.90                    1,865.55                11,333.25          140,642.89
    7              1,099.90                    2,020.38                11,178.42          138,622.51
    8              1,099.90                    2,188.07                11,010.73          136,434.44
    9              1,099.90                    2,369.69                10,829.11          134,064.75
   10              1,099.90                    2,566.39                10,632.41          131,498.36
   11              1,099.90                    2,779.36                10,419.44          128,719.00
   12              1,099.90                    3,010.06                10,188.74          125,708.94
   13              1,099.90                    3,259.91                 9,938.89          122,449.03
   14              1,099.90                    3,530.46                 9,668.34          118,918.57
   15              1,099.90                    3,823.50                 9,375.30          115,095.07
   16              1,099.90                    4,140.86                 9,057.94          110,954.21
   17              1,099.90                    4,484.53                 8,714.27          106,469.68
   18              1,099.90                    4,856.74                 8,342.06          101,612.94
   19              1,099.90                    5,259.86                 7,938.94           96,353.08
   20              1,099.90                    5,696.43                 7,502.37           90,656.65
   21              1,099.90                    6,169.23                 7,029.57           84,487.42
   22              1,099.90                    6,681.27                 6,517.53           77,806.15
   23              1,099.90                    7,235.80                 5,963.00           70,570.35
   24              1,099.90                    7,836.35                 5,362.45           62,734.00
   25              1,099.90                    8,486.78                 4,712.02           54,247.22
   26              1,099.90                    9,191.19                 4,007.61           45,056.03
   27              1,099.90                    9,954.06                 3,244.74           35,101.97
   28              1,099.90                   10,780.23                 2,418.57           24,321.74
   29              1,099.90                   11,674.98                 1,523.82           12,646.76
   30              1,100.13                   12,646.76                   554.81                0.00


This chart provides total annual principal and interest payments during the term of the loan
program shown. All adjustable loan program payments are calculated assuming that the
index rates which limit the adjustments will remain at their current values (accrual rate).




           Presented Saturday, June 10, 2000 by Anthony S. Mills, of AMI, 433 Carlsile Drive,
                   Herndon, VA 20170, Office (703) 555-3855, Fax (703) 555-3856.
Credit Table
Anthony S. Mills, AMI, 433 Carlsile Drive, Herndon, VA   20170, phone (703) 555-3855



                                              June 10, 2000


The following information is provided in conjunction with attached mortgage qualification
information.

The amounts shown below are calculated strictly in accordance with the method specified in
the Truth in Lending Act (TILA). These quantities are intended for TILA compliance only and,
particularly in the case of loan amount and down payment figures, will not match the
quantities typically quoted in the mortgage industry.


                  Program                        FHA 1 year ARM FHA 30 year fixed
                  Amount Financed                          $143,427.76                 $144,052.34
                  Down Payment                               $6,572.24                   $5,947.66
                  Note Rate                                    6.000%                      8.000%
                  Annual Percentage Rate                       6.894%                      8.888%
                  Number of Payments                               360                         360
                  Amt of Pmts:      from                       $898.15                   $1,102.73
                                       to                      $959.46                   $1,160.75
                  Frequency of Payments                        Monthly                     Monthly
                  Total of Payments                        $337,687.67                 $411,007.81



The "FHA 1 year ARM" loan program has an adjustable rate feature. The interest rate is
subject to increase or decrease after the first 12 months and every 12 months thereafter,
based upon changes to the index rate. Increases will not exceed 1.0% per adjustment. The
interest rate will never exceed 5.0% over the initial rate. If the index rate stays at its current
level, the interest rate would increase to 6.0%. Your principal and interest payment will
change with each interest rate change to maintain the amortization of the loan. The final
balance of $895.83 will be due on month 360.

The "FHA 30 year fixed" loan program is a fixed rate program. The interest rate and Principal
and Interest payments will not change over the term of the loan. The final balance of
$1,102.67 will be due on month 360.




           Presented Saturday, June 10, 2000 by Anthony S. Mills, of AMI, 433 Carlsile Drive,
                   Herndon, VA 20170, Office (703) 555-3855, Fax (703) 555-3856.
                                          June 10, 2000


Dear Trish,

We hope this information about our loan programs is helpful to you. It is designed to
help you as you shop for a home and prepare for your mortgage application to
understand the type and amount of loan that you are best qualified for and that meets
your needs.
The qualification guidelines explained in this packet are general in nature and not
necessarily rigid requirements. We would like to discuss any questions, needs, or
concerns you may have about your qualification for specific loan amounts or loan
programs. Please contact us at (703) 555-3855 for assistance.
We are committed to providing every potential borrower with fair and equal lending
opportunities. It is the policy of AMI not to discriminate against credit applicants on the
basis of race, color, religion, national origin, sex, marital status, age (provided the
applicant has the capacity to enter into a binding contract), presence of income
deriving from any public assistance program, or good faith exercise of any right under
the Consumer Credit Protection Act. In addition to our policy, these rights are
protected by the Equal Credit Opportunity Act.
The federal agency that administers AMI's compliance with the Equal Credit
Opportunity Act is:


                                  Office of Thrift Supervision
                                        PO Box 105217
                                  Atlanta, GA 30348-5217
                                                 or
                             Federal Trade Commission
               Bureau of Consumer Protection Division of Credit Practices
                                  Washington, DC

                                         Yours very truly,



                                         Anthony S. Mills




         Presented Saturday, June 10, 2000 by Anthony S. Mills, of AMI, 433 Carlsile Drive,
                 Herndon, VA 20170, Office (703) 555-3855, Fax (703) 555-3856.

								
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