By Michael Lasater #

*Please silence your cell phone

and save texting for breaks.

*Thank you.

*

*Commitment to the

financial well being of

our clients.

*Licensed loan officer

with over 10 years of

experience.

*

*Understand Lender Revenue

*Change the way you buy and sell homes

*Generate More Sales

*Put buyers in equitable position

*Make More Money

Inventory – The good the bad and the ugly

Buyer’s market or Seller’s market?

Are we competing against other offers?

*

*

*

*

*

Buyer’s agents – do your clients need

concessions?

Listing agents – Are your sellers willing to

pay concessions?

Where are values going?

*

Full price offer

No Seller concessions or repairs

As Is Condition

Fast Closing

Due Diligence

No Contingencies

*

*

*Buyer

*Seller

*Agent

*Lender

• Lender fees

• Title fees

• Pre-paid/escrow account

• 3rd Party fees : appraisal, credit, flood

• Additional costs: Review appraisal etc.

• Mortgage Insurance

*

Monthly vs. Up Front

Seller paid premium

Lender paid premium

*

Short term strategy

Long term strategy

Interest rate vs. MI rate

*

Is it better to pay more for a house or less

for a house?

Higher sales price = lower rate

Lower sales price = higher rate

*

Financial Health

Higher rates pay higher yield

The yield is used as a lender credit to pay

costs

*

*

FNMA

FHLMC

FHA VA USDA

Owner Occupied

LTV/CLTV

90.01 or greater

75.01 to 90.00

75.00 or less

3%

6%

9%

6%

Maximum all loans

4%

Maximum all loans

Note:

Vet cannot pay

closing fee or

termite inspection

No Seller Contribution Limit*

Closing cost can also be financed up to 100% of appraised

value.

Non-Owner Occupied 2% Maximum all

LTV's

N/A N/A N/A

FNMA

Homepath

Follow standard

maximum's with the

exception of LTV's

over 90% allow up to

6% concessions

N/A N/A N/A

If a seller grants credits, it assumed that

the selling price could be negotiated lower

by the exact amount of said credit.

To allow for a seller credit, the property

would have to appraise for the higher sales

price.

*

*The difference in payment:

$257,500 loan amount with 3% closing costs

including 1% origination @ 4.00% = $1229.34

$250,000 loan amount 0% origination @ 4.25% =

$1229.85

*

No Seller Concession

Buyer in equitable position

Financial well being

Facilitate more transactions

*

By increasing the loan amount to pay closing

costs it will take 20 months at P & I $1229 to

get back to the original sales price of

$250,000.

A lender paid option keeping the sales price

at $250,000 with a rate of 4.25% (same

payment of $1229), in 20 months the new

balance is $242,875.

*

Loan amount $257,500 @ 4% rate and P & I

payment is $1229.34 (we added the closing

costs to the loan amount)

*

Date Interest Principal Balance

Aug, 2013 $858.33 $371.01 $257,128.99

Sep, 2013 $857.10 $372.25 $256,756.74

Oct, 2013 $855.86 $373.49 $256,383.25

Nov, 2013 $854.61 $374.73 $256,008.52

Dec, 2013 $853.36 $375.98 $255,632.54

Jan, 2014 $852.11 $377.24 $255,255.30

Feb, 2014 $850.85 $378.49 $254,876.81

Mar, 2014 $849.59 $379.76 $254,497.05

Apr, 2014 $848.32 $381.02 $254,116.03

May, 2014 $847.05 $382.29 $253,733.74

Jun, 2014 $845.78 $383.57 $253,350.17

Jul, 2014 $844.50 $384.84 $252,965.33

Aug, 2014 $843.22 $386.13 $252,579.20

Sep, 2014 $841.93 $387.41 $252,191.79

Oct, 2014 $840.64 $388.71 $251,803.09

Nov, 2014 $839.34 $390.00 $251,413.09

Dec, 2014 $838.04 $391.30 $251,021.78

Jan, 2015 $836.74 $392.61 $250,629.18

Feb, 2015 $835.43 $393.91 $250,235.27

Mar, 2015 $834.12 $395.23 $249,840.04

Loan amount is $250,000 @ 4.25% rate and

P & I payment is $1229.85 (we used a

lender credit to pay for the closing costs)

*

Date Interest Principal Balance

Aug, 2013 $885.42 $344.43 $249,655.57

Sep, 2013 $884.20 $345.65 $249,309.91

Oct, 2013 $882.97 $346.88 $248,963.04

Nov, 2013 $881.74 $348.11 $248,614.93

Dec, 2013 $880.51 $349.34 $248,265.59

Jan, 2014 $879.27 $350.58 $247,915.02

Feb, 2014 $878.03 $351.82 $247,563.20

Mar, 2014 $876.79 $353.06 $247,210.14

Apr, 2014 $875.54 $354.31 $246,855.82

May, 2014 $874.28 $355.57 $246,500.25

Jun, 2014 $873.02 $356.83 $246,143.43

Jul, 2014 $871.76 $358.09 $245,785.33

Aug, 2014 $870.49 $359.36 $245,425.97

Sep, 2014 $869.22 $360.63 $245,065.34

Oct, 2014 $867.94 $361.91 $244,703.43

Nov, 2014 $866.66 $363.19 $244,340.24

Dec, 2014 $865.37 $364.48 $243,975.76

Jan, 2015 $864.08 $365.77 $243,609.99

Feb, 2015 $862.79 $367.06 $243,242.93

Mar, 2015 $861.49 $368.36 $242,874.56

$257,500 @ 4% what happens in 10 and 20 years?

Date Int Prin Bal

Aug 2023 $676.23 $553.12 $202,315.58

Aug 2033 $404.74 $824.60 $120,597.96

$250,000 @ 4.25% what happens in 10 and 20 years?

Date Int Prin Bal

Aug 2023 $703.40 $526.45 $198,081.64

Aug 2033 $425.21 $804.64 $119,253.86

*

The math shows how buyers gain equity

faster with lender paid costs vs. seller paid

costs.

In 20 months we avoided an additional

$7,500 to the price to cover costs,and

gained equity of $7,100

The payment was within 51 cents!

20+ year break even point

*

Thank you for coming!!!