ACTIVITY: Final Paper – Part 2 (Financing Scenario)
Lets continue our final project for this class by writing out the financing scenario for the borrowers. Download the mock data in this form, Borrower Mortgage Profile Data, and save it to your computer or cloud drive. Use this data (or create your own) to write your two paragraphs that will be part of the narrative report for the final paper. Please use. this. text. book Real Estate Finance 8th Edition by Walt Hubert and Walt Zozula, 2018. ISBN: 978-1626841789 Heres the data sheet:
You will also need to calculate a mortgage payment. Click here to access Karl’s Mortgage, which is a free resource that you can also install on your phone as an app:
https://www.drcalculator.com/mortgageLinks to an external site.
PLEASE SCROLL DOWN TO THE BOTTOM FOR 2 VIDEOS THAT WALK YOU THROUGH THE ASSIGNMENT STEP-BY-STEP.
Instructions
First, read the textbook Chapter 13 (pages 359-365) and textbook Appendix 1 (Real Estate Finance Mathematics; pages 431-438). If you are using the previous version (7th edition), refer instead to Chapter 15, Real Estate Finance Mathematics.
Next, using the mock data found in the profile sheet, write 3 paragraphs with facts about the mortgage loan scenario and financial calculations. Answer the questions below (shown in the template) in complete sentences. Write 3 to 5 sentences for each of the three paragraphs.
Lastly, insert textbook pages in parenthesis from Chapter 13 or Appendix 1 and submit assignment here in Canvas. Insert at least one textbook citation (page numbers in parenthesis) per paragraph.
Borrower & Mortgage Loan
Profile Mock Data
BRE-126 Real Estate Finance
Victor Valley College
Spring 2021 Term
Professor Regina Brown
Tracking Table
Mock data provided by instructor for completing the 1003 loan application form.
Students are welcome to create and insert different mock data. However, please do
not insert anyones confidential information (for example, do not use anyones
personal SS# or DOB). Whether you use the given mock data, or create your own
mock data, it needs to be practical and the numbers must calculate correctly.
Section
Field
Mock Data
Mortgage
Type:
FHA
Purchase Price:
$225,000
Downpayment:
3.5% for FHA loan.
Loan Amount:
Interest Rate:
2.0%
Loan Term:
30 years
Address:
1961 Rams Road, Victorville CA
92395
Type:
Single family residence (SFR)
Legal Description:
Lot 5, Block 75, Sunshine
Neighborhood tract
Property
BRE-126 Borrower Mortgage Profile Data
Page 1
Borrower
Year Built:
1995
Purpose:
Owner Occupied Purchase
Title / vesting:
Community property with right of
survivorship
Estate:
Fee Simple
Downpayment funds:
Borrowers bank accounts (savings)
Name:
Mickey Mouse
Social Security (SS#):
123-45-6789
Phone:
(123) 456-7890
Date of Birth (DOB):
January 2, 1985
Years of School:
Graduated from high school
Marital Status:
Married to Co-Borrower
Dependents:
Mighty Mouse, age 9
Address (physical):
123 Main Street, Apple Valley CA
98765
Own or Rent?
Rent
# of Years:
3 years
Address (mailing):
PO Box 123, Apple Valley CA 98765
Employer Name &
Address:
Tile Manufacturing Plant
Self-Employed?
No
Years on job:
1
Years employed in
this profession:
5
Position / Title /
Type of Business:
Office Manager
BRE-126 Borrower Mortgage Profile Data
Page 2
Co-Borrower
Business Phone:
(123) 654-9876
Self-Employed?
No
Dates:
From 1 year ago to 5 years ago
Monthly Income:
$4,570
Years on job:
4
Years employed in
this profession:
5
Position / Title /
Type of Business
Office Manager
Business Phone
(123) 654-7890
Previous Employer
Name & Address:
Southern California Logistics Airport
Previous
Employment:
$5,200 salary from job at Southern
California Logistics Airport
Other Income:
n/a
FICO Score:
685
Name
Minnie Mouse
Social Security (SS#):
987-65-4321
Phone:
(123) 456-7891
Date of Birth (DOB):
February 1, 1988
Years of School:
Graduated from high school
Marital Status
Married to Borrower
Dependents:
Mighty Mouse, age 9
Address (physical):
123 Main Street, Apple Valley CA
98765
Own or Rent?
Rent
BRE-126 Borrower Mortgage Profile Data
Page 3
# of Years
3 years
Address (mailing):
PO Box 123, Apple Valley CA 98765
Employer Name &
Address:
Chick-Fil-A Restaurant
Self-Employed?
No
Years on job:
4
Years employed in
this profession:
4
Position / Title /
Type of Business:
Shift Leader
Business Phone:
(123) 654-9875
Employer Name &
Address:
Minnie Mouse Loan Document
Signings
Self-Employed?
Yes
Dates:
Present 2 years ago
Monthly Income:
$1,500
Years on job:
2
Years employed in
this profession:
2
Position / Title /
Type of Business
Notary Public
Business Phone
(123) 654-9987
Monthly Income:
$3,850 salary from job at Chick-Fil-A
Restaurant PLUS $1,500 monthly
income from self-employment at
Minnie Mouse Loan Document
Signings
BRE-126 Borrower Mortgage Profile Data
Page 4
Housing Expenses
(joint)
Assets (joint)
Other Income:
n/a
FICO Score:
701
Rent:
$2,150
First Mortgage
(Principal & Interest):
Hazard (Fire)
Insurance:
Real Estate Property
Taxes:
Mortgage Insurance
(FHA Loan):
HOA Dues:
none
Other:
n/a
Cash in all bank
accounts:
Bank Account #1:
First Savings Bank, 456 River Road,
Apple Valley CA 12345
Account # 789-123456
$5,500 in account
Bank Account #2:
Second Big Bank, 789 Bear Valley
Road, Victorville CA 23456
Account # 456-78932
$7,000 in account
Stocks & Bonds
None owned
Life Insurance net
cash value
Borrower $10,000
Real estate:
None owned
BRE-126 Borrower Mortgage Profile Data
Page 5
Retirement funds:
Borrower $15,000
Co-Borrower $5,000
Net worth of
businesses owned:
Co-Borrower $3,000
Automobiles owned:
2015 Chevy, value $15,000
2020 Toyota, value $20,000
Liabilities (joint)
Other assets:
none
Debt #1
Chevy Credit Union
Account # 123-45698
$250 monthly payment
$7,000 balance owed
Debt #2
Toyota Credit Union
Account # 132-65489
$350 monthly payment
$10,000 balance owed
Debt #3
Macys Credit Card
Account # 321-78965
$100 monthly payment
$2,000 balance owed
Transaction Details
Alimony/Child
Support
none
Job-related Expense:
none
Previous Names:
Minnie Mouses name prior to
marriage was Minnie Winnie
Closing costs:
3% of purchase price (includes
escrow, title, and loan fees)
BRE-126 Borrower Mortgage Profile Data
Page 6
Property taxes:
1% of purchase price
Fire insurance:
$600 per year
Upfront mortgage
insurance premium
(UFMIP) for FHA loan:
1.75% of loan amount
Mortgage insurance
premium (MIP) for
FHA loan:
$50 monthly fee
Private mortgage
insurance (PMI) for
conventional loans
none
HOA fees:
none
Credit from sellers or
other parties:
$3,000 credit from sellers
Declarations
Judgments,
bankruptcies,
foreclosures, lawsuits
none
Acknowledgement
Borrower
sign & date
Co-borrower
sign & date
Loan Amount:
Loan to Value (LTV):
Appraisal cost:
$350
Credit score fee:
$70 (total for both borrowers)
Loan fees:
Included in the closing costs above
BRE-126 Borrower Mortgage Profile Data
Page 7
Mortgage Loan
