Please answer: I will gladly give you a good rate. Please show excel sheet and formula.

3. Effective Interest Rate - held to term

4. Effective Interest Rate - held through holding period

Thank you.

Analyze purchase of home with various types of financing Loans Offered Type Fixed Fixed ARM 3/1 ARM 5/1 ARM 7/1 Term 15 30 30 30 30 Rate 1.750% 2.250% 2.500% 2.375% 2.650% Amortization Monthly Monthly Monthly Monthly Monthly Points 0.959% 0.765% 0.0% 0.0% 0.0% Origination Fees $976 $500 $105 $4,516 $995 Index 0 0 1 yr LIBOR 1 yr LIBOR 1 yr LIBOR Margin 0.00% 0.00% 2.25% 2.25% 2.25% All Loans Conventional LTV 80.0% ARM Loans Payment Changes Annually after fixed period Minimum payment due will be an amount that will not exceed 7.5% more of less that the last minimum monthly payment due before the rate change Interest Rate Limit: Interest Rate Changes Negative Amortization 9.95% Annually with payment change None Index Beginning on the first interest rate change, interest will be computed based on the index. The index is the twelve (12) month average of the monthly average annual yield of the 1 year LIBOR rate. The most recent index available and the twelve months preceding will be used in the calculation Calculation of Interest Rate Changes The new annual interest rate will be the sum of the margin and average annual index computed for each adjustment period, rounded to the nearest 0.125% Underwriting Criteria Low 37.0% Debt to Income Ratio (PITI) Add'l Long Term Debt to Income High 42.0% 45.0% Security for the Loan: Annual Holding Costs Single Family Residence 1610 E. Wilshire Ave Fullerton, CA 92831 Living Area: Year Built: Room Count: Real Estate Taxes: Insurance: Utilities: Maintenance: $8,213.64 $1,250.00 $1,800.00 $1,800.00 1,537 square feet 1963 5/3/2 Purchase Price: $715,000 Assumptions: Holding Period: 10 years Projected Price Appreciation over holding Period (per year): Low 3.0% 5.0% High Potential Costs of Sale: 7.0% Inflation Holding Costs: Real Estate Taxes: Insurance: Utilities: Maintenance: 2.0% 1.75% 1.75% 1.75% Compute and Describe for each loan: 1. Payment - over term of the loan 2. Nominal Interest Rate 3. Effective Interest Rate held to term 4. Effective Interest Rate held through holding period 5. Loan balance at end of holding period 6. Annual holding costs 7. Equity Return of Sale 8. Internal Rate of Return on Equity - before taxes 9. Gross Income Needed to Qualify for Loan Conclusion: Describe which loan(s) the borrower should take and state your reasoning for that decision. Analyze purchase of home with various types of financing Loans Offered Type Fixed Fixed ARM 3/1 ARM 5/1 ARM 7/1 Term 15 30 30 30 30 Rate 1.750% 2.250% 2.500% 2.375% 2.650% Amortization Monthly Monthly Monthly Monthly Monthly Points 0.959% 0.765% 0.0% 0.0% 0.0% Origination Fees $976 $500 $105 $4,516 $995 Index 0 0 1 yr LIBOR 1 yr LIBOR 1 yr LIBOR Margin 0.00% 0.00% 2.25% 2.25% 2.25% All Loans Conventional LTV 80.0% ARM Loans Payment Changes Annually after fixed period Minimum payment due will be an amount that will not exceed 7.5% more of less that the last minimum monthly payment due before the rate change Interest Rate Limit: Interest Rate Changes Negative Amortization 9.95% Annually with payment change None Index Beginning on the first interest rate change, interest will be computed based on the index. The index is the twelve (12) month average of the monthly average annual yield of the 1 year LIBOR rate. The most recent index available and the twelve months preceding will be used in the calculation Calculation of Interest Rate Changes The new annual interest rate will be the sum of the margin and average annual index computed for each adjustment period, rounded to the nearest 0.125% Underwriting Criteria Low 37.0% Debt to Income Ratio (PITI) Add'l Long Term Debt to Income High 42.0% 45.0% Security for the Loan: Annual Holding Costs Single Family Residence 1610 E. Wilshire Ave Fullerton, CA 92831 Living Area: Year Built: Room Count: Real Estate Taxes: Insurance: Utilities: Maintenance: $8,213.64 $1,250.00 $1,800.00 $1,800.00 1,537 square feet 1963 5/3/2 Purchase Price: $715,000 Assumptions: Holding Period: 10 years Projected Price Appreciation over holding Period (per year): Low 3.0% 5.0% High Potential Costs of Sale: 7.0% Inflation Holding Costs: Real Estate Taxes: Insurance: Utilities: Maintenance: 2.0% 1.75% 1.75% 1.75% Compute and Describe for each loan: 1. Payment - over term of the loan 2. Nominal Interest Rate 3. Effective Interest Rate held to term 4. Effective Interest Rate held through holding period 5. Loan balance at end of holding period 6. Annual holding costs 7. Equity Return of Sale 8. Internal Rate of Return on Equity - before taxes 9. Gross Income Needed to Qualify for Loan Conclusion: Describe which loan(s) the borrower should take and state your reasoning for that decision