Rent vs. Own Analysis

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2 Rent vs. Own Analysis Initial Assumptions After-tax rate of return on investments Marginal Federal tax rate Estimated annual appreciation of home Estimated purchase price of home 5% Down payment on home Estimated closing costs (3%) Monthly rent paid currently Cost of Renting Annual rent Renter's annual insurance premium Total annual cost of renting Cost of Buying Mortgage loan amount Annual interest rate (LPMI loan program) Term of mortgage (years) Property taxes Homeowner's insurance Maintenance/HOA/Condo Fees Monthly mortgage payment (PITI & HOA) Annual mortgage payment Opportunity cost of buying (If you kept downpayment & closing costs in bank) Total cost of home ownership Less Adjustments: Principal reduction in mortgage Tax savings of interest deductions Tax savings of property tax Total adjustments Annual after-tax cost of home ownership Final Break-down: Estimated annual appreciation in value of home Net annual cost of home ownership 1.00% 25.00% 2.00% $400,000 $20,000 $12,000 $2,700 $32,400 $400 $32,800 $380, % 30 $4,320 $700 $0 $2,372 $28,465 $320 $28,785 $10,183 $4,570 $1,080 $15,833 $12,951 $8,000 $4,951 Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates terms and conditions are subject to change without notice

3 Mortgage Qualification Worksheet Income Annual Income Monthly Income Salary or wages $75, $6, Other salary or wages $50, $4, Rental income $0.00 $0.00 Investment income $0.00 $0.00 Additional income $0.00 $0.00 Total Income $125, $10, Second Qualifying Number Long-Term Debts Monthly Debt Balance $10, Car loan payments $1, $34, x 0.45 = $4, Credit card payments $ $3, (Debt) = $1, Other loan payment $0.00 $0.00 $3, Other loan payment $0.00 $0.00 Total Debts $1, $37, Qualifying The first qualifying number (above right) calculates your maximum monthly payment, assuming you have no long-term debt. It is computed by multiplying your total income by your housing cost ratio and dividing the result by 12. The second qualifying number takes into account your monthly debt payments, applying your total debt service ratio. Mortgage companies usually qualify you for monthly payments that are no higher than the lesser of the two results. By default, this worksheet assumes a housing cost ratio of 0.35 and a total debt service ratio of 0.45, which are standards often used for conventional mortgages. If different ratios apply in your case, change the values in the cells below. Housing cost ratio Total debt service ratio You may qualify for monthly payments of $3, Loan The table below calculates the amount of a loan you might qualify for with the monthly payment shown above. Depending on the circumstances, some or all of the following will be true: In all cases, your monthly payment will include principal and interest payments. In most cases, it will include a monthly escrow deposit to cover taxes and mortgage insurance, if any. In some cases, homeowner's insurance is also included in this calculation. If you are buying a condominium or co-op unit, the monthly payment figure may also include your homeowner's dues and/or maintenance fees. You will need to estimate these monthly costs and type them into the appropriate cells below. Important: This worksheet provides a rough estimate for conventional, fixed-term mortgages. Loan terms vary depending on type of mortgage and lender policies. Consult a professional lender for exact data. Total monthly payment allowed at 45% DTI $3, Estimated monthly tax payment $ Homeowner's insurance, if applicable $75.00 Homeowner's dues and other fees, if any $50.00 Mortgage Insurance Premium (see MIP/PMI factors) $0.00 Annual interest rate (e.g., 7.125) 4.875% Duration of loan (in months) 360 Monthly principal + interest payment $2, Maximum loan amount $550,350.48

4 What's The Right Loan Program For You? Conventional Conventional Conventional Regular FHA BPMI Monthly BPMI Single LPMI Single Sales Price $400,000 $400,000 $400,000 $400,000 Down Payment (percentage) 3.5% 5.0% 5.0% 5.0% Down Payment $14,000 $20,000 $20,000 $20,000 Annual Real Estate Taxes $4,320 $4,320 $4,320 $4,320 Home Owners Ins. (Annual) $700 $700 $700 $700 HOA or Condo Fee $0 $0 $0 $0 Combined Loan To Value 96.5% 95.0% 95.0% 95.0% Mortgage Loan $392,755 $380,000 $380,000 $380,000 MI Factor (Monthly or Single) 1.35% 0.85% 1.75% 1.75% Mortgage Term 30 Yr Fixed 30 Yr Fixed 30 Yr Fixed 30 Yr Fixed Mortgage Rate 4.000% 4.250% 4.250% 4.750% Estimated Closing Costs $12,000 $12,000 $12,000 $12,000 Single MI Premium $0 $0 $6,650 $0 Total Cash to Close $26,000 $32,000 $38,650 $32,000 Principal & Interest $1,875 $1,869 $1,869 $1,982 Monthly Real Estate Taxes $360 $360 $360 $360 Monthly Homeowner's Ins. $58 $58 $58 $58 HOA or Condo Fee $0 $0 $0 $0 Private Mortgage Insurance $442 $269 $0 $0 Total Monthly Payment $ 2,735 $ 2,557 $ 2,288 $ 2,401 To learn more about the programs above, and additional programs, financing, please contact me at the number listed below. Actual APR, Annual Percentage Rate may be slightly higher. Rates are subject to change without notice. Not everyone will qualify for the programs listed above. Please apply online at

5 Purchase Price $ 400,000 Initial Down Payment 20.0% 80,000 Base Scenario 1 Scenario 2 Scenario 3 Total Loan : $ 320,000 Interest Rate: 4.375% 3.875% 3.750% 3.625% EXTRA Down Payment 3,000 Discount Points: 0.000% 0.500% 1.250% 3.500% ONLY CHANGE BLUE CELLS! Initial Loan Additional Down Payment New Loan Base Loan Scenario Scenario 1 Discount Points Principal & Interest Monthly Savings Total Cost Break-Even (Years) Initial Loan Additional Down Payment New Loan Discount Points Principal & Interest Monthly Savings Total Cost Break-Even (Years) 320, ,000-1,598 $ , ,000 1,600 1,505 $ 93 1, ,000 3, ,000-1,583 $ 15 3, ,000 3, ,000 1,585 1,491 $ 107 4, ,000 6, ,000-1,568 $ 30 6, ,000 6, ,000 1,570 1,477 $ 121 7, ,000 9, ,000-1,553 $ 45 9, ,000 9, ,000 1,555 1,462 $ , ,000 12, ,000-1,538 $ 60 12, ,000 12, ,000 1,540 1,448 $ , ,000 15, ,000-1,523 $ 75 15, ,000 15, ,000 1,525 1,434 $ , ,000 18, ,000-1,508 $ 90 18, ,000 18, ,000 1,510 1,420 $ , ,000 21, ,000-1,493 $ , ,000 21, ,000 1,495 1,406 $ , ,000 24, ,000-1,478 $ , ,000 24, ,000 1,480 1,392 $ , ,000 27, ,000-1,463 $ , ,000 27, ,000 1,465 1,378 $ , ,000 30, ,000-1,448 $ , ,000 30, ,000 1,450 1,364 $ , ,000 33, ,000-1,433 $ , ,000 33, ,000 1,435 1,350 $ , ,000 36, ,000-1,418 $ , ,000 36, ,000 1,420 1,335 $ , ,000 39, ,000-1,403 $ , ,000 39, ,000 1,405 1,321 $ , ,000 42, ,000-1,388 $ , ,000 42, ,000 1,390 1,307 $ , ,000 45, ,000-1,373 $ , ,000 45, ,000 1,375 1,293 $ , ,000 48, ,000-1,358 $ , ,000 48, ,000 1,360 1,279 $ , ,000 51, ,000-1,343 $ , ,000 51, ,000 1,345 1,265 $ , ,000 54, ,000-1,328 $ , ,000 54, ,000 1,330 1,251 $ , ,000 57, ,000-1,313 $ , ,000 57, ,000 1,315 1,237 $ , ,000 60, ,000-1,298 $ , ,000 60, ,000 1,300 1,223 $ , ,000 63, ,000-1,283 $ , ,000 63, ,000 1,285 1,209 $ , ,000 66, ,000-1,268 $ , ,000 66, ,000 1,270 1,194 $ , ,000 69, ,000-1,253 $ , ,000 69, ,000 1,255 1,180 $ , ,000 72, ,000-1,238 $ , ,000 72, ,000 1,240 1,166 $ , ,000 75, ,000-1,223 $ , ,000 75, ,000 1,225 1,152 $ ,

6 Initial Loan Additional Down Payment New Loan Scenario 2 Scenario 3 Discount Points Principal & Interest Monthly Savings Total Cost Break-Even (Years) Initial Loan Additional Down Payment New Loan Discount Points Principal & Interest Monthly Savings Total Cost Break-Even (Years) 320, ,000 4,000 1,482 $ 116 4, , ,000 11,200 1,459 $ , ,000 3, ,000 3,963 1,468 $ 130 6, ,000 3, ,000 11,095 1,446 $ , ,000 6, ,000 3,925 1,454 $ 144 9, ,000 6, ,000 10,990 1,432 $ , ,000 9, ,000 3,888 1,440 $ , ,000 9, ,000 10,885 1,418 $ , ,000 12, ,000 3,850 1,426 $ , ,000 12, ,000 10,780 1,405 $ , ,000 15, ,000 3,813 1,413 $ , ,000 15, ,000 10,675 1,391 $ , ,000 18, ,000 3,775 1,399 $ , ,000 18, ,000 10,570 1,377 $ , ,000 21, ,000 3,738 1,385 $ , ,000 21, ,000 10,465 1,364 $ , ,000 24, ,000 3,700 1,371 $ , ,000 24, ,000 10,360 1,350 $ , ,000 27, ,000 3,663 1,357 $ , ,000 27, ,000 10,255 1,336 $ , ,000 30, ,000 3,625 1,343 $ , ,000 30, ,000 10,150 1,323 $ , ,000 33, ,000 3,588 1,329 $ , ,000 33, ,000 10,045 1,309 $ , ,000 36, ,000 3,550 1,315 $ , ,000 36, ,000 9,940 1,295 $ , ,000 39, ,000 3,513 1,301 $ , ,000 39, ,000 9,835 1,282 $ , ,000 42, ,000 3,475 1,287 $ , ,000 42, ,000 9,730 1,268 $ , ,000 45, ,000 3,438 1,274 $ , ,000 45, ,000 9,625 1,254 $ , ,000 48, ,000 3,400 1,260 $ , ,000 48, ,000 9,520 1,240 $ , ,000 51, ,000 3,363 1,246 $ , ,000 51, ,000 9,415 1,227 $ , ,000 54, ,000 3,325 1,232 $ , ,000 54, ,000 9,310 1,213 $ , ,000 57, ,000 3,288 1,218 $ , ,000 57, ,000 9,205 1,199 $ , ,000 60, ,000 3,250 1,204 $ , ,000 60, ,000 9,100 1,186 $ , ,000 63, ,000 3,213 1,190 $ , ,000 63, ,000 8,995 1,172 $ , ,000 66, ,000 3,175 1,176 $ , ,000 66, ,000 8,890 1,158 $ , ,000 69, ,000 3,138 1,162 $ , ,000 69, ,000 8,785 1,145 $ , ,000 72, ,000 3,100 1,149 $ , ,000 72, ,000 8,680 1,131 $ , ,000 75, ,000 3,063 1,135 $ , ,000 75, ,000 8,575 1,117 $ ,

7 Simple Mortgage Amortization Inputs Loan principal amount Annual interest rate Loan period in years Base year of loan Base month of loan Key Figures $350, Annual loan payments $21, % Monthly payments $1, Interest in first calendar year $14, Interest over term of loan $288, February Sum of all payments $638, Payments in First 12 Months Year Month Beginning Cumulative Cumulative Ending Payment Principal Interest Balance Principal Interest Balance Feb $350, $1, $ $1, $ $1, $349, Mar $349, $1, $ $1, $ $2, $349, Apr $349, $1, $ $1, $1, $3, $348, May $348, $1, $ $1, $1, $5, $348, Jun $348, $1, $ $1, $2, $6, $347, Jul $347, $1, $ $1, $2, $7, $347, Aug $347, $1, $ $1, $3, $9, $346, Sep $346, $1, $ $1, $3, $10, $346, Oct $346, $1, $ $1, $4, $11, $345, Nov $345, $1, $ $1, $4, $13, $345, Dec $345, $1, $ $1, $5, $14, $344, Jan $344, $1, $ $1, $5, $15, $344, Yearly Schedule of Balances and Payments Year Beginning Cumulative Cumulative Ending Payment Principal Interest Balance Principal Interest Balance 2015 $344, $21, $5, $15, $11, $29, $338, $338, $21, $6, $15, $17, $44, $332, $332, $21, $6, $14, $23, $59, $326, $326, $21, $6, $14, $30, $74, $319, $319, $21, $7, $14, $37, $88, $312, $312, $21, $7, $13, $44, $102, $305, $305, $21, $7, $13, $52, $115, $297, $297, $21, $8, $13, $60, $129, $289, $289, $21, $8, $12, $68, $142, $281, $281, $21, $8, $12, $77, $154, $272, $272, $21, $9, $12, $87, $166, $262, $262, $21, $9, $11, $96, $178, $253, $253, $21, $10, $11, $106, $189, $243, $243, $21, $10, $10, $117, $200, $232, $232, $21, $11, $10, $128, $210, $221, $221, $21, $11, $9, $139, $220, $210, $210, $21, $12, $9, $151, $229, $198, $198, $21, $12, $8, $164, $238, $185, $185, $21, $13, $8, $177, $246, $172, $172, $21, $13, $7, $191, $253, $158, $158, $21, $14, $6, $206, $260, $143, $143, $21, $15, $6, $221, $266, $128, $128, $21, $15, $5, $236, $272, $113, $113, $21, $16, $4, $253, $276, $96, $96, $21, $17, $3, $270, $280, $79, $79, $21, $18, $3, $288, $283, $61, $61, $21, $18, $2, $307, $286, $42, $42, $21, $19, $1, $327, $287, $22, $22, $21, $20, $ $348, $288, $1, $1, $1, $1, $6.63 $350, $288, $0.00

8 Estimate of Seller s Equity SELLING PRICE $400, Less: Mortgage Balance $240, NET BEFORE EXPENSES $160, Grantor's Tax $ Congestion Relief Tax $ HOA Documents $0.00 Title Charges $1, Prorated RE Taxes $0.00 Seller Paid Closing Costs $5, Miscellaneous $0.00 Agent Brokerage Fees $24, TOTAL CLOSING EXPENSES $31, SELLER S ESTIMATED EQUITY* $128, *The figures shown are preliminary estimates for planning purposes only. Actual costs will be shown in a Closing Statement prepared and approved by your attorney. Other costs not shown here may be incurred by you. Usual prorations will be made at closing for real estate taxes, etc., as specified in the Sales Contract.

9 $400,000 Purchase $380,000 Loan 95% LTV PMI Rate P&I Factor Monthly PMI Total Payment Monthly 4.500% $1, % $ $2, Split 4.625% $1, % $ $2, Lender PMI 4.875% $2, % $0.00 $2, Points Rate Origination Fee Points Cost Payment Time to Breakeven 4.875% 0.00% -2.02% -$7,676 $2, n/a 4.625% 0.00% -1.00% -$3,800 $1, n/a 4.500% 0.00% 0.00% $0 $1, % 0.00% 1.00% $3,800 $1, years

10 Investment Property Loan Comparison Prepared exclusively for: Property Address: John Smith 123 TBD Street, Leesburg, VA Cash Flows & Acquisition Costs 30 yr fixed 20% Down 30 yr fixed 25% Down 15 yr fixed 20% Down Value of Property $300, $300, $300, Down Payment % 20.00% 25.00% 20.00% Mortgage Balance $240, $225, $240, Interest Rate 4.875% 4.750% 4.000% Term Mortgage Payment $1, $1, $1, Points 0.000% 0.000% 0.000% Closing Costs $9,000 $9,000 $9,000 Total Points & Costs $9, $9, $9, Monthly Taxes & Expenses $ $ $ Management Fees $ $ $ Gross Monthly Rent $2, $2, $2, Net Monthly Cash Flow (PMT): $ $ $25.25 Cash Needed to Close (PV): $69, $84, $69, Internal Rate of Return (IRR) 30 yr fixed 20% Down 30 yr fixed 25% Down 15 yr fixed 20% Down Annual Rate of Appreciation 2.000% 2.000% 2.000% Holding Period (months) (N) Sales Price of Property $331,224 $331,224 $331,224 Sales Expenses % 8% 8% 8% Sales Expenses $ $26,498 $26,498 $26,498 Mortgage Pay off $219,995 $205,871 $175,342 Net Proceeds from Sale (FV) $84,731 $98,855 $129,384 Internal Rate of Return (IRR): 11.72% 10.91% 12.31% Return on Investmnet (ROI): 8.35% 8.23% 0.44% Presented by:

11 BLENDED RATE CALCULATION ENTER INTEREST RATES, TERMS & LOAN AMOUNTS FOR BOTH MORTGAGES MORTGAGE A MORTGAGE B Interest Rate 4.500% Interest Rate 6.500% Term (Months) 360 Term (Months) 360 Loan $250,000 Loan $25,000 Monthly Payment $1, $1, Monthly Payment $ $ BLENDED RATE 4.682% Monthly Current Loan Monthly Current Loan Month Payment Interest Principal Balance Month Payment Interest Principal Balance 1 $1, $ $ $249, $ $ $22.60 $24, , , , , , , , , , , , , , ,647.79

12 Analyzing Waiting To Buy In A Declining Market When Interest Rates Are Rising % Decline = 5% TODAY 12 Months Cost of a Home $400,000 $380,000 % Down Payment 5% 5% Interest Rates 4.50% 5.50% Payment 30Yr Fixed $1,925 $2,050 If you Purchase NOW... Monthly Savings or (Payment Increase) $124 Annual Savings or (Payment Increase) $1,492 Life of Loan Savings or (Payment Increase) $44,753