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The Power of a Full Price Offer On No Park Craftsman w/Rate Credit With a full shift in power from a seller's market to a buyer's market, both sellers and buyers need to reevaluate the best approach to a transaction. The examples below illustrate how a simple seller credit towards the buyer's Interest Rate can produce significant monthly savings for the buyer. Traditional

Pymt Effect w/25k Price Reduction

Less Than 90k Income Qualifies w/Rate Reduction

Sales Price

$495,000

$470,000

$495,000

Down Payment %

3.5000%

3.5000%

3.5000%

Loan Amount

$477,675

$453,550

$477,675

30Y Fixed FHA

30Y Fixed FHA

30Y Fixed FHA

5.125% / 5.294%

5.125% / 5.303%

4.375% / 4.537%

Term

Amortized

Amortized

Amortized

Payment

$3,375.88

$3,244.52

$3,159.96

$95,318.91

$91,610.00

$89,222.42

$131.36

$215.92

Program Rate / APR

Income to Qualify Monthly Savings

In this example we used 2.5 in points or $12,375 to buy down the interest rate from 5.125% to 4.375% resulting in a net savings of $215.92 per month. Also, the points are a t ax deduction in the year the property is purchased for the buyer. Please consult your CPA for specific information. This example is to show you the power of reducing Rate versus Price. Let’s meet and discuss how this strategy can help you finance or sell the home of your dreams!

EQUAL HOUSING LENDER

Mark Kvare Mortgage Planner 866-509-0587 www.YourAnchorFunding.com Mark@YourAnchorFunding.com Anchor Funding 3750 Convoy St Suite 320 San Diego · CA · 92111

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Open House 4-11-2010