Worksheets - Arch Mortgage

ROADMAP toHOMEOWNERSHIPWorksheets 2022 Arch Mortgage Insurance CompanyMCUS-B0156O-0322

ROADMAP toHOMEOWNERSHIPWorksheetsWorksheetsCALCULATING YOUR GROSS MONTHLYINCOME WORKSHEET 1Remember that your lender is interested in your gross monthly income — what you make beforetaxes and other payroll deductions. You should also include all other sources of regular income,if they are likely to continue for three years. Be sure to list the income of each co-borrower,including yourself.Average Monthly AmountYouCo-BorrowerGross Pay 0.00 0.00Gross Pay (for second job) 0.00 0.00Regular Overtime 0.00 0.00Bonuses/Tips 0.00 0.00Alimony, Child Support or other Maintenance Income 0.00 0.00Pension/Social Security Benefits 0.00 0.00Dividend/Interest Earnings 0.00 0.00Business Earnings 0.00 0.00Veterans Administration Benefits 0.00 0.00Unemployment Compensation 0.00 0.00Public Assistance 0.00 0.00Other 0.00 0.00Total for each Co-Borrower 0.00 0.00Grand Total Gross Monthly Income 0.00ARCH MORTGAGE INSURANCE COMPANY 230 NORTH ELM STREET GREENSBORO NC 27401 ARCHMI.COM 2022 Arch Mortgage Insurance Company. All Rights Reserved. Arch MI is a marketing term for Arch Mortgage Insurance Company and United GuarantyResidential Insurance Company.MCUS-B0156O-03222

ROADMAP toHOMEOWNERSHIPWorksheetsWorksheetsCALCULATING YOUR MONTHLY DEBTPAYMENTS WORKSHEET 2Remember that your lender wants to be sure your income will be enough to cover yourmortgage payments and other monthly debts — those debts that will not be paid off in the next10 months. Be sure to include the debts of all co-borrowers, including you.Average Monthly AmountYouCo-BorrowerCar Loan 0.00 0.00Installment Loan Payment (such as loans for furnitureor appliances) 0.00 0.00Credit Card 1 average monthly payment 0.00 0.00Credit Card 2 average monthly payment 0.00 0.00Credit Card 3 average monthly payment 0.00 0.00Student Loan 0.00 0.00Medical/Health Care Payment (not an insurancepremium automatically deducted from your paycheck) 0.00 0.00Other 0.00 0.00Total for Each Co-Borrower 0.00 0.00Grand Total Gross Monthly Debt Payments 0.00ARCH MORTGAGE INSURANCE COMPANY 230 NORTH ELM STREET GREENSBORO NC 27401 ARCHMI.COM 2022 Arch Mortgage Insurance Company. All Rights Reserved. Arch MI is a marketing term for Arch Mortgage Insurance Company and United GuarantyResidential Insurance Company.MCUS-B0156O-03223

ROADMAP toHOMEOWNERSHIPWorksheetsWorksheetsCALCULATING YOUR MAXIMUM MORTGAGEPAYMENT AND MORTGAGE AMOUNT WORKSHEET 3You can use the ratio method for calculating the maximum mortgage payment a lender mayallow, based on your income and debts. In this worksheet, we use 33% for the housing expenseratio and 38% for the total debt ratio. These ratios are typically used for affordable housingmortgage products that target first-time homebuyers and/or those withlimited income and savings.HOUSING EXPENSE RATIOTotal Gross Monthly Income (from Worksheet 1) x33%XMaximum Mortgage Payment (covering PITI and homeowner association or condo fee) 0.00 (a)Total Gross Monthly Income (from Worksheet 1) 0.00x38%XMaximum Mortgage Payment (plus all other monthly debt payments) TOTAL DEBT RATIO0.00.33.380.00 (b)These two calculations show you the maximum allowed under such mortgage products for your(a) mortgage payment and for (b) your mortgage payment plus monthly debt payments. Nowlet’s subtract your current monthly debt payments from (b) above to see how much is left overfor your mortgage payment:MINUS CURRENT MONTHLY DEBT PAYMENTSMaximum Mortgage Payment plus Monthly Debt Payments (covering PITI and homeownerassociation or condo fee) 0.00minus Monthly Debt Payments (from Worksheet 2)- (minus)0.00Maximum Mortgage Payment (covering PITI and homeowner association or condo fee and minus Current Monthly Debt Payments)ARCH MORTGAGE INSURANCE COMPANY 230 NORTH ELM STREET GREENSBORO NC 27401 ARCHMI.COM 2022 Arch Mortgage Insurance Company. All Rights Reserved. Arch MI is a marketing term for Arch Mortgage Insurance Company and United GuarantyResidential Insurance Company.0.00 (c)MCUS-B0156O-03224

ROADMAP toHOMEOWNERSHIPWorksheetsWorksheetsCALCULATING YOUR MAXIMUM MORTGAGEPAYMENT AND MORTGAGE AMOUNT WORKSHEET 3Choose the lower of (a) or (c). This figure is the maximum allowable for your mortgagepayment given your current income and debt.0.00 (d)As we know, your mortgage payment is made up of four components known as PITI —principal, interest, taxes and insurance. In order to calculate the mortgage amount madepossible by (d), we need to include only the P and I components. So multiply (d) by 80% toarrive at the P and I portion of the payment.0.000.00 (e) (P and I portion only) (d)x .80 Divide (e) by the factor below for the interest rate or rates currently being offered by mortgagelenders for 30-year fixed-rate loans.Remember that thesecalculations are based on oneset of ratios—33% for housingexpense and 38% for total debts.Other mortgage products havedifferent ratios. Also rememberthat the calculations take intoconsideration only some ofyour monthly expenses. Theydo not include groceries, utilitypayments, the cable bill and soon. You should consider yourtotal cashflow situation tomake sure that you will be ableto afford your new home andnew mortgage payments.Interest RateP and I Factor for 30 Year 20.006650.006990.007340.007690.008050.00 (e) divided by P and I Factor 0.00449 0 Maximum Loan AmountARCH MORTGAGE INSURANCE COMPANY 230 NORTH ELM STREET GREENSBORO NC 27401 ARCHMI.COM 2022 Arch Mortgage Insurance Company. All Rights Reserved. Arch MI is a marketing term for Arch Mortgage Insurance Company and United GuarantyResidential Insurance Company.MCUS-B0156O-03225

ROADMAP toHOMEOWNERSHIPWorksheetsWorksheetsSHOPPING FOR A MORTGAGE(1)WORKSHEET 4(2)(3)Lender’s NameContact’s NamePhone NumberWebsiteLoan Amount Needed Type of MortgagesAvailable(conventional, FHA,VA, fixed-rate, ARMs)Interest Rate%%%Points%%%APR%%%Rate Lock-in After loan approvalor at application? Written agreement? Lasts how long? Covers both rateand points?ARCH MORTGAGE INSURANCE COMPANY 230 NORTH ELM STREET GREENSBORO NC 27401 ARCHMI.COM 2022 Arch Mortgage Insurance Company. All Rights Reserved. Arch MI is a marketing term for Arch Mortgage Insurance Company and United GuarantyResidential Insurance Company.MCUS-B0156O-03226

ROADMAP toHOMEOWNERSHIPWorksheetsWorksheetsSHOPPING FOR A MORTGAGE(1)WORKSHEET 4(2)(3)Loan Terms jCredit ReportdfjadkfjDocument Preparation Flood CertificationAssumption (ifapplicable)Lender’s AttorneyTitle Search andInsuranceOtherAre Escrows Requiredfor Taxes andInsurance?Minimum DownPayment With PMI. Without PMI.ARCH MORTGAGE INSURANCE COMPANY 230 NORTH ELM STREET GREENSBORO NC 27401 ARCHMI.COM 2022 Arch Mortgage Insurance Company. All Rights Reserved. Arch MI is a marketing term for Arch Mortgage Insurance Company and United GuarantyResidential Insurance Company.MCUS-B0156O-03227

ROADMAP toHOMEOWNERSHIPWorksheetsWorksheetsSHOPPING FOR A MORTGAGE(1)WORKSHEET 4(2)(3)If PMI is required: Upfront cost. Monthly Premiums. Automaticallycanceled at whatpoint?Prepayment Penalty:* Is there one? If yes, how long is itin effect?Is the Loan Assumable?Is Credit LifeInsurance Required?* If yes, how is thepremium paid?Application Options In-person meeting. Via phone and fax. Online application.Payment options Monthly. Biweekly. Automaticdeduction. Other?Is payment datareported to thenational creditbureaus?*ARCH MORTGAGE INSURANCE COMPANY 230 NORTH ELM STREET GREENSBORO NC 27401 ARCHMI.COM 2022 Arch Mortgage Insurance Company. All Rights Reserved. Arch MI is a marketing term for Arch Mortgage Insurance Company and United GuarantyResidential Insurance Company.MCUS-B0156O-03228

ROADMAP toHOMEOWNERSHIPWorksheetsWorksheetsSHOPPING FOR A MORTGAGEWORKSHEET 4FOR ARMS ONLY: Initial interest rate. Adjusted howfrequently? Index. Margin.Rate Caps Periodic. Lifetime.Payment Cap Can negativeamortization occur? If so, is themaximum LTV alsocapped?If convertible: When can the loanbe converted to afixed-rate? What fees arecharged? Which index isused? What margin isused?*REMEMBER THE POSSIBLE WARNING SIGNS OF A “PREDATORY” LENDER Prepayment penalty of five years or longer. Requirement that credit life insurance premium be added to the mortgage loan amount orotherwise paid as a lump sum at closing. Does not report your mortgage payment history to the three national credit bureaus.ARCH MORTGAGE INSURANCE COMPANY 230 NORTH ELM STREET GREENSBORO NC 27401 ARCHMI.COM 2022 Arch Mortgage Insurance Company. All Rights Reserved. Arch MI is a marketing term for Arch Mortgage Insurance Company and United GuarantyResidential Insurance Company.MCUS-B0156O-03229

ROADMAP toHOMEOWNERSHIPWorksheetsWorksheetsCHECKLIST OF WHAT TO BRING WHENAPPLYING FOR YOUR MORTGAGE Personal check for the loan application fee.Copy of sales contract for the property you are buying.Copy of real estate listing for the property you are buying.Copy of the earnest money check.Each individual on the loan application must bring: Payroll stub(s) from employer or W-2 forms for the past two years or other proof ofemployment and salary. If self-employed: balance sheets, tax returns for the past two years and year-to date profitand loss statement. Copies of last three monthly bank statements for all checking and savings accounts. Company name, number and value of stocks and bonds you own. Make, year and value of all cars you own. If establishing a non-traditional credit history: Canceled checks or money order receipts asevidence of rental, utility or other payments made on time.ARCH MORTGAGE INSURANCE COMPANY 230 NORTH ELM STREET GREENSBORO NC 27401 ARCHMI.COM 2022 Arch Mortgage Insurance Company. All Rights Reserved. Arch MI is a marketing term for Arch Mortgage Insurance Company and United GuarantyResidential Insurance Company.MCUS-B0156O-032210

Total Gross Monthly Income (from Worksheet 1) x38% Maximum Mortgage Payment (plus all other monthly debt payments) X (b) These two calculations show you the maximum allowed under such mortgage products for your (a) mortgage payment and for (b) your mortgage