2. Comprehensive Module - Real Estate and Mortgage Slide 1 WELCOME Module II: Comprehensive Presentation Designed for use with the Qualifier Plus ® Training Program Real Estate or Mortgage Workbooks Table of Contents

3. Comprehensive Module - Real Estate and Mortgage Slide 2 TABLE OF CONTENTS Advanced Qualifying Payment Options APR Balances / Balloons Estimated Tax Savings Rent vs. Buy Comparisons This presentation includes step-by-step instruction for the following comprehensive chapters: Future Value / Appreciation Prices, Yields and Deeds Combo Loans Commission / Listing Price Calculating Points and Fees

4. Comprehensive Module - Real Estate and Mortgage Slide 3 ADVANCED QUALIFYING Example: The buyers have combined annual income of $60,000 and monthly debts of $400. They have $5,000 down. An ARM loan at a start rate of 5% amortized for 30 years is available. Property taxes run 1.25%, hazard insurance at 0.5% and PMI of 0.6%. Homeowner’s association dues are $40 per month. For what loan amount and price range of homes do the buyers appear to qualify at 28:36 and 29:41? Use the  key for less stringent qualifying (i.e., to present greater qualifying loan amounts using 29:41 ratios vs. 28:36). Or, enter custom ratios by overriding the existing ratios in the  or  keys. -- Refer to Workbook Chapter 8 Table of Contents

5. Comprehensive Module - Real Estate and Mortgage Slide 4 ADVANCED QUALIFYING StepsKeysDisplay Clear Calculator  0.00 Enter Income  60,000.00 Enter Debt  400.00 Enter Down Pmt  5,000.00 Enter Interest  5.00 % Enter Term  30.00 Enter Tax*  1.25 % Enter Insurance*  0.50 % Enter Mortgage Ins*  0.60 % Enter Assoc Dues  40.00 Do Not Clear Calculator -- Refer to Workbook Chapter 8 * If you are using a Qualifier Plus IIIfx, you will need to press  , , and/or  to enter tax, insurance and/or mortgage insurance. Table of Contents

6. Comprehensive Module - Real Estate and Mortgage Slide 5 184,631.02 MAX 191,455.52 MAX 196,455.52 189,631.02 ADVANCED QUALIFYING StepsKeysDisplay Display Qual 1 Ratios  28.00-36.00 Find Qual Loan Amt  184,631.02 Display Price w/ Down  189,631.02 Display Qual 2 Ratios  29.00-41.00 Find Qual Loan Amt  191,455.52 Display Price w/ Down  196,455.52 Do Not Clear Calculator Now, use the same buyer information as above, but enter/store new ratios of 33% income and 43% debt into the  key. -- Refer to Workbook Chapter 8 Table of Contents 28.00-36.00 29.00-41.00

7. Comprehensive Module - Real Estate and Mortgage Slide 6 ADVANCED QUALIFYING StepsKeysDisplay Enter Custom Ratios  33.00-43.00 Find Qual Loan Amt  218,753.50* Display Price w/ Down  223,753.50 Reset Qual 2 Ratios  29.00-41.00 * The maximum loan amount is about $34,000 more with the more flexible ratios vs. the standard 28:36. -- Refer to Workbook Chapter 8 Table of Contents 33.00-43.00 218,753.50 MAX 223,753.50 29.00-41.00

8. Comprehensive Module - Real Estate and Mortgage Slide 7 ADVANCED QUALIFYING Example: A buyer is interested in a home that is listed for $275,000. The buyer will put 20% down and obtain an 80% loan at 7% amortized for 30 years. The buyer has long- term monthly debts of $500. Property taxes run 1.25% of the sales price and hazard insurance will cost $800 per year. What is the gross annual income required to buy this home? -- Refer to Workbook Chapter 8 Now, find the income needed to qualify for a conventional loan. Table of Contents

9. Comprehensive Module - Real Estate and Mortgage Slide 8 ADVANCED QUALIFYING StepsKeysDisplay Clear Calculator  0.00 Enter Sales Price  275,000.00 Enter Down Pmt  20.00 % Enter Interest  7.00 % Enter Term  30.00 Enter Debt  500.00 Enter Tax*  1.25 % Enter Insurance*  800.00 Display Ratios  28.00-36.00 Find Income Needed  77,862.45 Please Note: To find the monthly income needed to qualify: $77,862.45  12 months = $6,488.54. -- Refer to Workbook Chapter 8 * If you are using a Qualifier Plus IIIfx, you will need to press  , , and/or  to enter tax, insurance and/or mortgage insurance. Table of Contents 28.00-36.00 77,862.45 REQ

10. Comprehensive Module - Real Estate and Mortgage Slide 9 PAYMENT OPTIONS -- Refer to Workbook Chapter 9 Example: Calculate the monthly payment for a $200,000 loan at 7% interest with a 30-year term. Then, convert it to a bi-weekly payment and find out how many years will it take to pay off the loan, the total interest savings, the total interest and principal paid and the bi-weekly payment. The Qualifier Plus IIIx and Qualifier Plus IIIfx calculators can easily compute bi-weekly payments and illustrate the savings of bi-weekly loans. Table of Contents

11. Comprehensive Module - Real Estate and Mortgage Slide 10 PAYMENT OPTIONS -- Refer to Workbook Chapter 9 StepsKeysDisplay Clear Calculator  0.00 Enter Loan Amount  200,000.00 Enter Interest  7.00 % Enter Term  30.00 Find P&I Payment  1,330.60 Convert to Bi-Weekly  23.71* Find Total Int Savings  68,925.50 Find Bi-Wkly Int Svgs  210,092.30 Display Loan Amount  200,000 Total Int & Principal  410,092.30 Find Bi-Weekly Pmt  665.30 Clear Bi-Weekly Info  *0.00 * Making a bi-weekly payment will pay off the loan in 23.71 years, compared to 30 years for monthly payment. * Pressing  only once will clear the display, but the calculator will remain in bi-weekly mode (i.e. 26 payments per year) until  is pressed twice in succession. Table of Contents 1,330.60 P+I 23.71 68,925.50 SVG 210,092.30200,000.00410,092.30665.30 P+I 0.00

12. Comprehensive Module - Real Estate and Mortgage Slide 11 PAYMENT OPTIONS -- Refer to Workbook Chapter 9 Example: A $275,000 loan with a starting rate of 3.95%, amortized for 30 years, will have an initial payment of $1,304.98. Calculate as follows: Sometimes an ARM loan is a good option for buyers who can benefit from low introductory interest rates. This calculator can handle ARM loans with ease. ARM (Adjustable Rate Mortgage) StepsKeysDisplay Clear Calculator  0.00 Enter Loan Amount  275,000.00 Do Not Clear Calculator Table of Contents

13. Comprehensive Module - Real Estate and Mortgage Slide 12 PAYMENT OPTIONS -- Refer to Workbook Chapter 9 StepsKeysDisplay Enter Start Rate  3.95 % Enter Term  30.00 Find 1 st Year P&I Pmt  1,304.98 Do Not Clear Calculator Assume that after each year, the lender can increase the interest rate 1/2% per year to a cap of 5%. What will the new ARM payment be each year? When will the payment increase meet its maximum cap? Enter the lifetime cap and the interest rate increase of 1/2% per year by separating the interest increase from the year with the colon key (i.e. interest adjustment  term adjustment.) Table of Contents 1,304.98 P+I

14. Comprehensive Module - Real Estate and Mortgage Slide 13 1,925.49 8 2,000.31 9 0.50-1.00 2,074.00 10 PAYMENT OPTIONS -- Refer to Workbook Chapter 9 StepsKeysDisplay Set Cap Percentage  5.00 % Set Annual Increase  0.50-1.00 Find 1 st ARM Pmt  1,383.13 Find 2 nd ARM Pmt  1,461.47 Find 3 rd ARM Pmt  1,539.81 Find 4 th ARM Pmt  1,617.97 Find 5 th ARM Pmt  1,695.78 Find 6 th ARM Pmt  1,773.07 Find 7 th ARM Pmt  1,849.70 Find 8 th ARM Pmt  1,925.49 Find 9 th ARM Pmt  2,000.31 Find 10 th ARM Pmt  2,074.00* * This is the maximum increase adjustment. When the maximum increase is reached, an “M” will display for “maximum”. Since the cap has been reached, subsequent ARM payments will be the same. Table of Contents 1,383.13 1 1,461.47 2 1,539.81 3 1,617.97 4 1,695.78 5 1,773.07 6 1,849.70 7 5.00 CAP M ARM

15. Comprehensive Module - Real Estate and Mortgage Slide 14 PAYMENT OPTIONS -- Refer to Workbook Chapter 9 StepsKeysDisplay Example: $275,000 loan with a starting rate of 3.95%, amortized for 30 years; lifetime cap of 5%. Calculate as follows: Now, display the worst-case scenario of a 1% annual increase, using the loan parameters of the previous example. Clear Calculator  0.00 Enter Loan Amount  275,000.00 Enter Start Rate  3.95 % Enter Term  30.00 Find 1 st Year Pmt  1,304.98 Do Not Clear Calculator Table of Contents 1,304.98 P+I

16. Comprehensive Module - Real Estate and Mortgage Slide 15 1.00-1.00 PAYMENT OPTIONS -- Refer to Workbook Chapter 9 StepsKeysDisplay As a worst-case scenario, what if the rate increases 1% after the end of each year? Then, figure the ARM payments. Set Annual Increase  1.00-1.00 Find 1 st ARM Pmt  1,463.58 Find 2 nd ARM Pmt  1,626.79 Find 3 rd ARM Pmt  1,793.67 Find 4 th ARM Pmt  1,963.41 Find 5 th ARM Pmt  2,135.26* Display 6 th Year Prin  255,483.10 Display 6 th Year Int  8.95%* Show Remain Term  25.00 * This is the maximum increase adjustment. When the maximum increase is reached, an “M” will display for “maximum”. Since the cap has been reached, subsequent ARM payments will be the same. * 3.95% initial rate, plus 5% cap limit. Table of Contents M 1,463.58 1 1,626.79 2 1,793.67 3 1,963.41 4 2,135.26 5 255,483.10 8.95 25.00

17. Comprehensive Module - Real Estate and Mortgage Slide 16 PAYMENT OPTIONS -- Refer to Workbook Chapter 9 Example: As a rough example of a negative amortization payment, find the extremely low monthly payment on a $250,000 loan with a start rate of only 1.95%. Then, recalculate the payment if the actual rate increased to 6%, to show them how much their payment could increase. In addition to an ARM, an additional method of presenting the lowest payment possible is a loan with negative amortization/deferred interest. This is usually a good option if the buyer wants to pay the smallest payment possible over the short term. Low-Start Payment / Negative Amortization Table of Contents

18. Comprehensive Module - Real Estate and Mortgage Slide 17 917.81 P+I PAYMENT OPTIONS -- Refer to Workbook Chapter 9 StepsKeysDisplay Clear Calculator  0.00 Enter Loan Amount  250,000.00 Enter Start Rate  1.95 % Enter Term  30.00 Find Initial Payment  917.81 Enter Actual Rate  6.00 % Find Standard Pmt  1,498.88 Table of Contents 1,498.88 P+I

19. Comprehensive Module - Real Estate and Mortgage Slide 18 PAYMENT OPTIONS -- Refer to Workbook Chapter 9 Example: Find the initial low monthly payment on a $250,000 loan with an interest-only rate of 6.5%. Another option is an interest-only loan. Interest-Only Payment StepsKeysDisplay Reset / Clear All  0.00 Enter Loan Amount  250,000.00 Enter Interest  6.50 % Enter Term  30.00 Find P&I Payment  1,580.17 Find Total Payment  1,580.17 Find Interest-Only Pmt  1,354.17 Table of Contents 1,580.17 P+I 1,580.17 TTL 1,354.17 I/O

20. Comprehensive Module - Real Estate and Mortgage Slide 19 PAYMENT OPTIONS -- Refer to Workbook Chapter 9 Example: Find the payment for a 30-year, $375,000 mortgage at 7%. Then find the payment for a 15- year mortgage. The difference between a 30- and 15-year loan will result in significant interest savings. 30- vs. 15-Year Loan StepsKeysDisplay Clear Calculator  0.00 Enter Loan Amount  375,000.00 Enter Interest  7.00 % Enter Term  30.00 Do Not Clear Calculator Table of Contents

21. Comprehensive Module - Real Estate and Mortgage Slide 20 231,709.08 AMRT 2,494.88 P+I 3,370.61 P+I 523,158.37 AMRT PAYMENT OPTIONS -- Refer to Workbook Chapter 9 Now, reset the term. StepsKeysDisplay Find 30-Year P&I Pmt  2,494.88 Find Total Interest  523,158.37 StepsKeysDisplay Enter New Term  15.00 Find 15-Year P&I Pmt  3,370.61 Find Total Interest  231,709.08* * Although monthly payment is higher, the buyer will save over $290,000! Table of Contents

22. Comprehensive Module - Real Estate and Mortgage Slide 21 ANNUAL PERCENTAGE RATE (APR) Example: A buyer is qualified for a $350,000 mortgage. The 30-year fixed-rate loans are averaging 6.5%. The buyer is putting less than 20% down and will pay mortgage insurance of 0.75%. If the loan will cost 1.5 points plus $750 in fees, what is the APR (including mortgage insurance)? And, what are the total finance charges, principal amount financed, total cost, P&I payment, monthly mortgage insurance, and PIMI payment? The Qualifier Plus IIIx and Qualifier Plus IIIfx can provide an estimate of the total cost of a loan, including points / fees and mortgage insurance when applicable. -- Refer to Workbook Chapter 10 Table of Contents

23. Comprehensive Module - Real Estate and Mortgage Slide 22 218.75 MI 2,430.99 PIMI * APR includes mortgage insurance, if entered. Total finance charges include mortgage insurance over the life of the loan, to present a worst-case scenario; however, most people can eliminate MI once a certain LTV is met. ANNUAL PERCENTAGE RATE (APR) -- Refer to Workbook Chapter 10 StepsKeysDisplay Clear Calculator  0.00 Enter Loan Amount  350,000.00 Enter Term  30.00 Enter Interest  6.50 % Solve for Payment  2,212.24 Enter Mortgage Ins*  0.75 % Recall Loan Amount  350,000.00 Calculate Points  5,250.00 Add Fees  6,000.00 Calculate APR  7.61 (APR%)* Find TTL Fin Charges  531,155.71** Display Prin Financed  344,000.00 Find Total Cost  875,155.71 Find P&I Payment  2,212.24 Find Monthly Mtg Ins*  218.75 Find PIMI Payment  2,430.99*** * If you are using a Qualifier Plus IIIfx, you will need to press  , , and/or  to enter tax, insurance and/or mortgage insurance. ** Total finance charge includes mortgage insurance*, points / fees and total interest paid. *** Payment includes estimated monthly mortgage insurance. Table of Contents 2,212.24 P+I 350,000.005,250.006,000.00 7.61 APR 531,155.71 FIN 344,000.00 AMT 875,155.71 TTL 2,212.24 PI

24. Comprehensive Module - Real Estate and Mortgage Slide 23 REMAINING BALANCE / BALLOON PAYMENT StepsKeysDisplay Example: $200,000 loan at 6.5% is amortized for 30 years, but due in 5 years. What is balance after 5 years? To determine the balance on a loan after a series of payments, simply find P&I payment, then enter the year the loan is due and solve for the remaining balance. Clear Calculator  0.00 Enter Loan Amount  200,000.00 Enter Interest  6.50 % Enter Term  30.00 Find P&I Payment  1,264.14 Enter Payoff Year  5. Find Remaining Bal  187,221.95 -- Refer to Workbook Chapter 11 Table of Contents 1,264.14 P+I 187,221.95 BAL

25. Comprehensive Module - Real Estate and Mortgage Slide 24 ESTIMATED TAX SAVINGS Example: A buyer is willing to put 20% down on a $375,000 home and is in the 30% tax bracket. Fixed-rate loans average 6.75% for a 30-year term, annual property taxes are $4,000 and hazard insurance is $600. What is the estimated annual income tax savings and after-tax payment? Home ownership offers significant tax benefits. The tax savings function is a second function of the  key. The estimated annual property tax, property / hazard insurance and buyer’s tax bracket are subtracted from the PITI payment to determine the net, after-tax payment. -- Refer to Workbook Chapter 12 Table of Contents

26. Comprehensive Module - Real Estate and Mortgage Slide 25 ESTIMATED TAX SAVINGS -- Refer to Workbook Chapter 12 StepsKeysDisplay Clear Calculator  0.00 Enter Term  30.00 Enter Interest  6.75 % Enter Sale Price  375,000.00 Enter Down Payment  20.00 % Find Loan Amount 300,000.00 Enter Property Tax*  4,000.00 Enter Insurance*  600.00 Find P&I Payment  1,945.79 Find PITI Payment  2,329.13 Enter Tax Bracket  30.00 % Find Annual Tax Svgs  7,245.69 Find Monthly Tax Svgs  603.81 Find After-Tax Pmt  1,725.32 * If you are using a Qualifier Plus IIIfx, you will need to press  , , and/or  to enter tax, insurance and/or mortgage insurance. Please Note: After-tax payment is PITI minus monthly tax savings; an estimate of what the buyer will actually pay after the mortgage and property insurance income tax deduction. Table of Contents 1,945.79 P+I 2,329.13 PITI 300,000.007,245.69 SVG 603.81 SVG 1,725.32 NET 30.00 BRKT

27. Comprehensive Module - Real Estate and Mortgage Slide 26 RENT VS. BUY COMPARISONS Example: A person is currently renting a home for $1,250 per month. Current fixed-rates are 7.5% on 30- year loans and the renter can afford to put 10% down. Local property taxes run 1.25% and hazard insurance runs 0.35%. The renter is in the 28% income tax bracket. Assuming good credit, what comparably priced home and loan amount can he/she afford for the same monthly expenditure? What is estimated annual and monthly income tax savings if he/she purchases a home, instead of renting? This calculator can help with the rent vs. buy conversion by finding a comparable home price at the level of rent they are currently paying. -- Refer to Workbook Chapter 13 Please Note: This is different from previous tax savings function, as, in addition to calculating an estimated income tax savings, it uses current rent and determines an equivalent home price and loan amount. Simply enter current loan rate/term and property/insurance rates, as well as the renter’s tax bracket and monthly rent. Table of Contents

28. Comprehensive Module - Real Estate and Mortgage Slide 27 RENT 4,838.84 SVG 403.24 SVG 216,781.98 RENT VS. BUY COMPARISONS -- Refer to Workbook Chapter 13 StepsKeysDisplay Clear Calculator  0.00 Enter Interest  7.50 % Enter Term  30.00 Enter Down Payment  10.00 % Enter Property Tax*  1.25 % Enter Insurance*  0.35 % Enter Tax Bracket  28.00 % Enter Rent  216,781.98** Display Loan Amount  195,103.78*** Find Total Payment  1,653.24** Find Annual Tax Svgs  4,838.84 Find Monthly Tax Svgs  403.24 * If you are using a Qualifier Plus IIIfx, you will need to press  , , and/or  to enter tax, insurance and/or mortgage insurance. ** At $1,250 in monthly rent, they could afford a home priced at over $216K *** With 10% down, this would be the loan amount. Table of Contents 195,103.78 1,653.24 RENT

29. Comprehensive Module - Real Estate and Mortgage Slide 28 FUTURE VALUE / APPRECIATION StepsKeysDisplay Example: A buyer is considering a home currently selling for $475,000. What will it be worth in 5 years at 6%? To calculate the future value or appreciation of a home, enter the appreciation rate as the interest and the current home price as loan amount, then solve for future value. Clear Calculator  0.00 Set Pmts / Year  1.00 Enter Term  5.00 Enter Interest  6.00 % Enter Present Value  475,000.00 Find Future Value  635,657.15 -- Refer to Workbook Chapter 14 Please Note: You must set the calculator to 1 payment per year for future value problems, as it is default/factory-set to 12 for monthly loans. Please Note: Remember to reset payments per year to 12 when finished by entering  . Table of Contents 635,657.15

30. Comprehensive Module - Real Estate and Mortgage Slide 29 PRICES AND YIELDS / TRUST DEEDS StepsKeysDisplay Example: A $79,000 note at 8.5%, payable at $607.44 per month, is due in 7 years. To buy this note at a price that will yield 18%, what price should be paid? Use the  key when solving for yield or rate of return and when solving for purchase price. Clear Calculator  0.00 Enter Note Amount  79,000.00 Store Value  79,000.00 Enter Interest  8.50 % Enter Payment  607.44 Do Not Clear Calculator -- Refer to Workbook Chapter 15 Table of Contents 79,000.00

31. Comprehensive Module - Real Estate and Mortgage Slide 30 49,955.0729,044.93 PRICES AND YIELDS / TRUST DEEDS StepsKeysDisplay Enter Term  7.00 Find Future Value  73,532.64 Enter Desired Yield  18.00 % Find Value 49,955.07 Subtract from Memory  49,955.07 Find Desired Price  29,044.93 Clear Memory  0.00 -- Refer to Workbook Chapter 15 Example: Consider a note with the following terms: 60 months remaining, a face amount when due of $8,000, payable $65.00 per month. The seller is offering this note at $7,000. What is the yield? If a 15% yield is desired, what should be paid? Table of Contents 73,532.64 0.00

32. Comprehensive Module - Real Estate and Mortgage Slide 31 PRICES AND YIELDS / TRUST DEEDS StepsKeysDisplay Clear Calculator  0.00 Enter Future Value   8,000.00 Enter Note Price  7,000.00 Enter Monthly Pmt  65.00 Enter Remain Term   60.00 Determine Yield  13.18 % Enter Desired Yield  15.00 % Find Desired Price 6,528.79 -- Refer to Workbook Chapter 15 Table of Contents 13.18 6,528.79

33. Comprehensive Module - Real Estate and Mortgage Slide 32 COMBO LOANS Example: The buyer may qualify for an 80:10:10, or ‘combo’ loan, to avoid mortgage insurance due to a low down payment. If the loan amount is $350,000, determine the savings of the combo loan if the variables are: 1st TD: 6.75%, 30 years 2nd TD: 7.5%, 10 years LTV: 80:10 If they choose the fixed-rate loan and pay mortgage insurance, use the following for a comparison: Fixed-Rate Loan w/PMI: $350,000, 7%, 30 years, 0.75% mortgage insurance rate. You can use this calculator to quickly compare combo loan (80:10:10 or 80:15:5) scenarios. -- Refer to Workbook Chapter 16 Table of Contents

34. Comprehensive Module - Real Estate and Mortgage Slide 33 COMBO LOANS StepsKeysDisplay Clear Calculator  0.00 Enter Loan Amount  350,000.00 Enter Interest  7.00 % Enter Term  30.00 Enter Mortgage Ins*  0.75 % Find P&I Payment  2,328.56 Find Pmt w/ Mtg Ins  2,547.31 Enter 1 st Int & Term   6.75-30.00 Enter 2 nd Int & Term   7.50-10.00 Do Not Clear Calculator -- Refer to Workbook Chapter 16 * If you are using a Qualifier Plus IIIfx, you will need to press  , , and/or  to enter tax, insurance and/or mortgage insurance. Table of Contents 2,328.56 P+I 2,547.31 PITI 6.75-30.00 1ST 7.50-10.00 2ND

35. Comprehensive Module - Real Estate and Mortgage Slide 34 COMBO LOANS StepsKeysDisplay Find Combo (1 st /2 nd ) Int  6.79 % Find Fixed-Rate Int  7.91 % Find Combo Pmt  2,479.48 Find Fixed-Rate Pmt  2,547.31 Find Monthly Svgs  67.83 Show Adjusted Term  8.22 Find 1 st TD Loan Amt  311,111.11 Find 2 nd TD Loan Amt  38,888.89 Find 1 st TD Payment  2,017.86 Find 2 nd TD Payment  461.62 Display LTV  80.00-10.00 -- Refer to Workbook Chapter 16 Table of Contents 6.79 CMB 7.91 EQV 2,479.48 CMB 2,547.31 EQV 67.83 SVG 8.22 ADJ 311,111.11 CMB 38,888.89 CMB 2,017.86 CMB 461.62 CMB 80.00-10.00 LTV

36. Comprehensive Module - Real Estate and Mortgage Slide 35 COMBO LOANS Example: The buyer may qualify for an 80:15:5 combo loan of $275,000. 1st/2nd TD variables are: 1st TD: 6.67%, 30 years 2nd TD: 8%, 7 years LTV: 80:15 If they choose the fixed-rate loan and pay mortgage insurance, use the following for a comparison: Fixed-Rate Loan w/PMI: $275,000, 7.25%, 30 years, 0.75% mortgage insurance rate -- Refer to Workbook Chapter 16 Please Note: Use the second function of the  key for the LTV of 80:15:5. Table of Contents

37. Comprehensive Module - Real Estate and Mortgage Slide 36 2,047.86 PITI 6.67-30.00 1ST 8.00-7.00 2ND COMBO LOANS StepsKeysDisplay Clear Calculator  0.00 Enter Loan Amount  275,000.00 Enter Interest  7.25 % Enter Term  30.00 Enter Mortgage Ins*  0.75 % Find P&I Payment  1,875.98 Find Pmt w/ Mtg Ins  2,047.86 Enter 1 st Int & Term   6.67-30.00 Enter 2 nd Int & Term   8.00-7.00 Do Not Clear Calculator -- Refer to Workbook Chapter 16 * If you are using a Qualifier Plus IIIfx, you will need to press  , , and/or  to enter tax, insurance and/or mortgage insurance. Table of Contents 1,875.98 P+I

38. Comprehensive Module - Real Estate and Mortgage Slide 37 8.16 EQV 2,166.49 CMB 2,047.86 EQV -118.63 SVG 7.00 ADJ 231,578.95 CMB 43,421.05 CMB 1,489.72 CMB 676.77 CMB 80.00-15.00 LTV COMBO LOANS StepsKeysDisplay Find Combo (1 st /2 nd ) Int   6.75 % Find Fixed-Rate Int  8.16 % Find Combo Pmt  2,166.49 Find Fixed-Rate Pmt  2,047.86 Find Monthly Svgs  -118.63* Show Adjusted Term  7.00 Find 1 st TD Loan Amt  231,578.95 Find 2 nd TD Loan Amt  43,421.05 Find 1 st TD Payment  1,489.72 Find 2 nd TD Payment  676.77 Display LTV  80.00-15.00 -- Refer to Workbook Chapter 16 Please Note: The Qualifier Plus IIIx handles both 80:10:10 and 80:15:5 LTV combo loans, but also accepts any LTV. Simply enter any LTV (e.g., 90  5) using the colon key, then press the  key and resolve the above. * In this example, the fixed- rate loan is the better deal. The 1st/2nd TD payment is almost $120 more than the fixed-rate loan w/PMI. Table of Contents 6.75 CMB

39. Comprehensive Module - Real Estate and Mortgage Slide 38 CALCULATING COMMISSION / LISTING PRICE StepsKeysDisplay Example: If the commission is 3% and the home sold for $459,700, what is the commission in dollars? Using the Qualifier Plus IIIx or Qualifier Plus IIIfx, you can instantly calculate commission using the percent  key. Clear Calculator  0.00 Enter Sale Price  459,700 Multiply by Percent  0.03 Find Commission  13,791.00 Do Not Clear Calculator -- Refer to Workbook Chapter 17 Table of Contents 13,791.00

40. Comprehensive Module - Real Estate and Mortgage Slide 39 CALCULATING COMMISSION / LISTING PRICE StepsKeysDisplay If the commission must split 50% with a broker, what is the commission? Multiply by Percentage  0.5 Find Half Commission  6,895.50 -- Refer to Workbook Chapter 17 - Real Estate Workbook Example: The buyer is anxious to sell, and you suggest reducing the sales price by 3%. If the price was originally listed at $365,500, what is the new price StepsKeysDisplay Clear Calculator  0.00 Enter List Price  365,000 Subtract Percentage  10,965.00 Find New Price  354,535.00 Table of Contents 6,895.50 354,535.00

41. Comprehensive Module - Real Estate and Mortgage Slide 40 CALCULATING POINTS AND FEES StepsKeysDisplay Example: The client has agreed to 1.5% in points to refinance with a 6.5% rate on a 30-year fixed. The loan amount is $300,000. The bank offers a.125 yield spread premium for the 6.5% rate. The par rate is 6% and offers no rebate or yield spread premium. Using the Qualifier Plus IIIx or Qualifier Plus IIIfx, you can also calculate points and fees, and resulting commission. Clear Calculator  0.00 Add Points and Rebate   1.625 Convert to Percentage  0.01625 Multiply Loan Amount  300,000 Find Commission  4,875.000 -- Refer to Workbook Chapter 17 - Mortgage Workbook Table of Contents 0.01625 4,875.000

42. Comprehensive Module - Real Estate and Mortgage Slide 41 QUESTIONS Questions? Thank you for your attendance and participation. Good Luck! Table of Contents

43. Comprehensive Module - Real Estate and Mortgage Slide 42 06-10-04 THU