their largest and most import ant debt obligation while their "Your Personal Mortgage Consultant" help you make an informed decision
when selecting your home loan.
Mark Klein
Date prepa
home represents their most significant and largest asset. Yet, 28720 Roadside Drive Suite 300 Agoura Hills, CA 91301
Tel:(818) 865-0600 Fax:(818) 865-2508
9/11/2007
most consumers lack a plan to manage their mortgage. Total Cost Analysis FOLLOW THESE 3 SIMPLE STEPS:
This isn’t the fault of the consumer. Quite simply, the tools Client of Mark Klein
1. Review the SUMMARY of your loans. Details for each program ca
second page.
and training necessary to provide complete analysis have 2. Next, review the TOTAL COST ANALYSIS for each loan so that yo
program might be right for your financial situation.*
plan. A mortgage plan allows you to consider several Each program shows a first mortgage, and possibly a
P&I
MI
$6,486
$0
$5,625
$0
$6,788
$0
mortgage options and determine the strategy that best helps second mortgage. MI Cut Off N/A N/A N/A
you to accomplish your goals. Although this table will show you which loan will provide
you the lowest payment, such a loan may not be the right
2nd Loan Amount
Interest Rate
$0
0.000%
$0
0.000%
$0
0.000%
loan for your financial situation.*
Term (months) Int. Only Int. Only Int. Onl
A mortgage plan will have a powerful impact on your P&I $0 $0 $0
overall financial plan. Consumers who secure the services Current Property Value: $1,500,000.00 Totals Total Payment
Net Savings
$6,486
$302
$5,625
$1,163
$6,788
$0
of a qualified mortgage planning professional are uniquely
empowered to make solid decisions. Whether it be TOTAL COST ANALYSIS Months:
Total Payment
180 30/15
$1,167,477
30/15 IO
$1,012,500
30 Yr Fixed
$1,221,819
optimizing equity or debt, aligning the mortgage with A true loan comparison cannot be made simply by
comparing the payments that a loan offers. There are Principal Paid $267,046 $0 $254,117
financial goals, adjusting for life events, or saving money various other fees and issues which effect the overall
cost of a loan. The table at the right analyzes the
Int / MI Paid
Balance Left
$900,431
$732,954
$1,012,500
$1,000,000
$967,702
$745,883
through identifying the lowest cost transaction, a mortgage difference in total overall cost of your home loan.
Closing & Pts. $6,664 $6,664 $4,560
plan clarifies your options and illuminates quality Evaluating the total cost is the key to selecting the lowest
cost mortgage for your individual needs.*
Total Cost
Net Savings
$907,095
$112,069
$1,019,164
$0
$972,262
$46,902
decisions.
MORTGAGE PLAN WITH ASSET ACCUMULATION 30/15 30/15 IO 30 Yr Fixed
Monthly Amount $300 $1,168 $0
This Mortgage Plan is designed to help you make an
Int. Rate 8.00% 8.00% 8.00%
informed decision on a mortgage integrated with your overall
Mortgage Plan Benefits financial plan. This example displays an estimated Real
Estate value combined with potential investment account
Home Value
Loan Balance
$1,738,911
$938,757
$1,738,911
$1,000,000
$1,738,911
$943,300
growth.* Equity $800,154 $738,911 $795,611
Years: 5 Accum. Total $22,043 $85,821 $0
• Underst and how to identify the lowest cost option. > Net Worth $822,197 $824,732 $795,611
NOTICE AND DISCLAIMER: The results above are based on (i) information provided by you, (ii) estimates of interest rates, your ability to save, your tax bracket, closing costs and oth
amounts, (iii) currently available loan programs and (iv) information and assumptions discussed with your advisor; all of which might change over time. If the information or assumption
not correct or change, then the results above will change. Your advisor will provide additional information about costs, fees and other information required by state and federal law.
1 SUMMARY
This summary table displays information on up to four
1st Loan Amount
Interest Rate
30/15
$1,000,000
6.750%
30/15 IO
$1,000,000
6.750%
30 Yr Fixed
$1,000,000
7.200%
5/1 Int Only
$1,000,000
6.250%
loan programs, including their respective fees and
monthly payments. Term (months) 360 Int. Only 360 Int. Only
P&I $6,486 $5,625 $6,788 $5,208
Each program shows a first mortgage, and possibly a MI $0 $0 $0 $0
second mortgage. MI Cut Off N/A N/A N/A N/A
Although this table will show you which loan will provide 2nd Loan Amount $0 $0 $0 $0
you the lowest payment, such a loan may not be the right Interest Rate 0.000% 0.000% 0.000% 0.000%
loan for your financial situation.*
Term (months) Int. Only Int. Only Int. Only Int. Only
P&I $0 $0 $0 $0
Current Property Value: $1,500,000.00 Totals Total Payment $6,486 $5,625 $6,788 $5,208
Net Savings $302 $1,163 $0 $1,580
NOTICE AND DISCLAIMER: The results above are based on (i) information provided by you, (ii) estimates of interest rates, your ability to save, your tax bracket, closing costs and other
amounts, (iii) currently available loan programs and (iv) information and assumptions discussed with your advisor; all of which might change over time. If the information or assumptions are
not correct or change, then the results above will change. Your advisor will provide additional information about costs, fees and other information required by state and federal law.
C tChleoscionstgs aasnsodciPaoteidntwsi:thMcolsotsm ortgage analyses fail to factor in D Total Cost: Finally a way to compare the True Costs associat-
ing and points. As your , I want to ed with a mortgage transaction, over time. The actual costs as-
help you make an informed decision by including this infor- sociated with a loan include Interest, PMI (Mortgage Insu-
mation. rance), Closing Costs, and Points. Principal is not considered a
cost factor, because as it is paid it is converted to equity.
TOTAL COST ANALYSIS Months: 180 30/15 30/15 IO 30 Yr Fixed 5/1 Int Only
Total Payment $1,167,477 $1,012,500 $1,221,819 $937,500
A true loan comparison cannot be made simply by
comparing the payments that a loan offers. There are Principal Paid $267,046 $0 $254,117 $0
various other fees and issues which effect the overall Int / MI Paid $900,431 $1,012,500 $967,702 $937,500
cost of a loan. The table at the right analyzes the
difference in total overall cost of your home loan.
Balance Left
Closing & Pts.
Total Cost
$732,954
$6,664
$907,095
$1,000,000
$6,664
$1,019,164
$745,883
$4,560
$972,262
$1,000,000
$11,000
$948,500
Making an Informed Decision
Evaluating the total cost is the key to selecting the lowest
cost mortgage for your individual needs.* Net Savings $112,069 $0 $46,902 $70,664
MORTGAGE PLAN WITH ASSET ACCUMULATION 30/15 30/15 IO 30 Yr Fixed 5/1 Int Only
Why Total Cost Matters
This Mortgage Plan is designed to help you make an
Monthly Amount $300 $1,168 $0 $1,580 Understanding the total cost of your mortgage
informed decision on a mortgage integrated with your overall
financial plan. This example displays an estimated Real
Int. Rate
Home Value
8.00%
$1,738,911
8.00%
$1,738,911
8.00%
$1,738,911
8.00%
$1,738,911 means understanding the true cost. The only way
Estate value combined with potential investment account
growth.*
Loan Balance
Equity
$938,757
$800,154
$1,000,000
$738,911
$943,300
$795,611
$1,000,000
$738,911
to measure the performance of your mortgage is
Years: 5 Accum. Total $22,043 $85,821 $0 $116,093 to assess all the various elements over time.
> Net Worth $822,197 $824,732 $795,611 $855,005
Home Value
Loan Balance
$2,015,875
$853,010
$2,015,875
$1,000,000
$2,015,875
$862,118
$2,015,875
$1,000,000
How Long Will You Keep Your Loan?
Equity $1,162,865 $1,015,875 $1,153,756 $1,015,875 When time is a factored into comparing loan op-
Years: 10
Accum. Total
Net Worth
$54,884
$1,217,748
$213,681
$1,229,556 $1,153,756
$0 $289,055
$1,304,929
tions it can greatly alter the difference between
> Assets > Debts 25.58 yrs. 23.92 yrs. 30.00 yrs. 20.75 yrs. options and scenarios. A Total Cost Analysis allows
MONTHLY TAX BENEFIT Tax Brac: 40% 30/15 30/15 IO 30 Yr Fixed 5/1 Int Only you and your mortgage planner to determine
Consider the tax benefits of your home mortgage. By
consolidating your non-tax deductible debt (credit cards,
1st Mortgage
2nd Mortgage
$2,250
$0
$2,250
$0
$2,400
$0
$2,083
$0
which option is truly in your best interest based on
etc.) into your mortgage, you can save $$$. This is just an
estimate - contact your tax consultant for advice.
Property Tax
Total Monthly
$625
$2,875
$625
$2,875
$625
$3,025
$625
$2,708
the time you'll want to keep your loan. Small dif-
Net Savings $167 $167 $317 $0 ferences, properly managed over time, can mean
NOTICE AND DISCLAIMER: The results above are based on (i) information provided by you, (ii) estimates of interest rates, your ability to save, your tax bracket, closing costs and other
amounts, (iii) currently available loan programs and (iv) information and assumptions discussed with your advisor; all of which might change over time. If the information or assumptions are
many thousands of dollars in savings.
not correct or change, then the results above will change. Your advisor will provide additional information about costs, fees and other information required by state and federal law.