1. 1 Mortgage Options that Solve and Sizzle Presented by: Lynne A. Coverdale, MBA Salin Bank & Trust Company

2.  Mortgage Loan Programs  Conventional  Fixed  Hybrid ARM  Conforming  Jumbo  Government  FHA  VA  USDA  Portfolio/Niche Products  Doctor loan program  Community Hero Program  First-time homebuyer program 2

3.  Purchase  Conventional - Range of 75 – 97%  Government  FHA – 96.5% - 97.75%  VA – 90% - 100%  USDA 100%  Portfolio/Niche Products  Doctor loan program 85 – 100%  Community Hero Program 97 – 100%  First-time homebuyer program 95 – 97%  Possible grant money 3

4.  Refinance  Conventional 80 – 89.9%  Government  FHA 96.5%  VA 90 – 100%  USDA 100%  Portfolio/Niche Products  Doctor loan program 95 – 100%  Community Hero Program N/A  First time home-buyer program N/A 4

5.  Consolidate Debt  Lower Payment  Reduce Term  Save interest  Tax deductions 5

6. Scenario:  Client has home worth $400,000.00  Owes  $200,500.00 on current mortgage  30 year fixed with 25 years left rate is 4.50% ($1,114.71 PI)  $30,000 credit card debt ranging  Rates range from 6.99 – 21.99% (average int $324)  $15,000 in personal unsecured loan  Rate 7.99% - ($100 per month interest)  Possible Solution  Refinance to include credit cards and unsecured loan  New loan $250,700 includes mortgage, cc and personal loan  Term: 20 year fixed  Rate: 3.75%  $1,486.37 PI versus $1,538.71 for PI mortgage and interest only for other debt  Benefits  Consolidate Debt  Lower Payment  Reduce Term  Save interest (See amortization schedule)  Tax deductions 6

7.  Need to buy home before selling current home  Swing (aka bridge) loan  Piggy-back loan  Niche  Doctor  Work needs to be done on home  Asset- secured loan  Mortgage once work completed  Personal unsecured line of credit  Post-closing  Home Equity Line of Credit (HELOC)  Construction permanent loan 7

8.  Put least amount down – avoid monthly mortgage insurance  Piggy-back  LPMI  Single Premium  Seller contribution  Seller pays points  Seller buys out mortgage insurance 8

9.  Scenario 1:  Need to buy home before selling current home  Option  Swing (aka bridge) loan  Details  Current home worth $300,000  Owes $100,000.00 on current home  New home price $500,000  Buyers don’t want to put current home on market yet due to chaos would cause on family and showings, etc.  Need money out of current home to buy new 9

10.  Scenario 1:  Need to buy home before selling current home  Option  Swing (aka bridge) loan  Solution  Swing loan against current home for $240,000 (80% ltv)  Swing pays off $100,000 loan and nets $140,000 for down on new home  Payment on swing interest only at prime + 1% $900 estimated int. pmt.  The interest-only swing payment replaces the current mortgage payment which typically includes principal and interest and taxes and insurance  Swing loan available for 12 months  Cost $400 fee when payoff loan  Loan for new home - $400,000  $100,000.00 down payment  $40,000 for moving expenses and other expenses and savings  No mortgage insurance 10

11.  Scenario 2:  Put least amount down, avoid mortgage insurance and jumbo loan pricing  Option  Piggy-back loan  Details  New home price $600,000  Only want to put down $30,000  They want to keep the majority of their assets in investments WITH YOU! 11

12.  Scenario 2:  Put least amount down, avoid mortgage insurance and jumbo loan pricing  Option  Piggy-back loan  Solution  First mortgage for $417,000.00  Fixed rate 30 year fixed 3.75%  Principal and interest payment: $1,931  Home equity line of credit (2 nd mortgage) for $153,000  Prime + 1.5% - interest only payments  3.5 + 1.5 = $638 (varies with prime)  Recommendation to pay as though a 30 year fixed  $821.34 PI 12

13.  Scenario 2:  Put least amount down, avoid mortgage insurance and jumbo loan pricing  Option  Piggy-back loan  Comparison  Piggy-back loan  Total payment PI and I $2,569  Total payment PI and PI $2,752  Down payment $30,000  One Jumbo loan  $480,000 loan 4.25 30 year fixed  Payment for PI $2,361.31  20% down $120,000 (an extra $90,000 out of the market) 13

14.  Scenario 2:  Put least amount down, avoid mortgage insurance and jumbo loan pricing  Piggy Back 14

15.  Scenario 2:  Put least amount down, avoid mortgage insurance and jumbo loan pricing  One loan jumbo: 15

16.  Scenario 2:  Put least amount down, avoid mortgage insurance and jumbo loan pricing  Benefits  Piggy-back  More tax deductibility ($23,104 vs. $20,243  Check with tax advisor  Earn more money on the funds invested (the extra $90,ooo) that was not used as down payment ($450 per month est.)  The $90,000 not used for down payment would become $120,440 if the investments were earning an average of 6% over the first 5 year period; $161,176 after 10 years at 6% average  One loan  One loan versus two loans and one being a variable rate  Lower monthly payment 16

17.  Helpful/Consumer Resources  Mortgage related:  https://salin.mortgagewebcenter.com/Resources/ Resources/CalculatorsIndex https://salin.mortgagewebcenter.com/Resources/ Resources/CalculatorsIndex  https://salin.mortgagewebcenter.com/Resources/ Resources/LoanPrograms https://salin.mortgagewebcenter.com/Resources/ Resources/LoanPrograms  https://salin.mortgagewebcenter.com/ResourceCe nter/Glossary.asp https://salin.mortgagewebcenter.com/ResourceCe nter/Glossary.asp  https://salin.mortgagewebcenter.com/Resources/ Resources/Closing https://salin.mortgagewebcenter.com/Resources/ Resources/Closing 17

18.  Helpful/Consumer Resources  General Consumer  www.annualcreditreport.com www.annualcreditreport.com  www.optoutprescreen.com or 1-888-5-optout www.optoutprescreen.com  www.donotcall.gov www.donotcall.gov  www.dmachoice.org www.dmachoice.org  www.ftc.gov/faq/consumer-protection www.ftc.gov/faq/consumer-protection 18

19. My contact information: Lynne Coverdale Salin Bank and Trust 8455 Keystone Crossing Dr. Indianapolis, IN 46240 317-452-8125 – direct 317-370-0016 – cell l.coverdale@salin.com l.coverdale@salin.com www.Salin.mortgagewebcenter.com 19