Sample A

Mortgage Data
Existing Mortgage
New Mortgage
Interest rate
7%
10% fixed rate
Remaining principal balance
$50,000.00
$50,000.00 plus assumed
Monthly P & I payment
$458.22
Unknown
Remaining term
174 months
174 months - plus months assumed
Loan origination fee
N/A
1%
Purchaser’s discount points
N/A
2
Using a financial calculator and following Page 2 of form
ROW-R-117B Buydown Computation of Increased Interest
, the computation provides the following result:
  1. Lesser remaining balance: $50,000.00
  2. Lesser remaining term: 174 months
  3. $50,000.00 at 7% for 174 months = payment of: $458.22
  4. Payment of $458.22 at 10% for 174 months will pay off a mortgage in the amount of: $42,010.50
  5. $50,000.00 minus $42,010.50 = $7,989.50
  6. Add origination fee (amount for item 4): $420.11
  7. Add discount points (amount for item 4): $840.21
  8. Total buy-down interest amount (Add items 5, 6 & 7): $9,249.82