| Q: Can I create a report for
a property I have bought recently? |
| A: Yes you can. The Anawise Report
can also prepare a complete financial summary for a property that you
bought earlier in 2007. |
|
| Q: Why do I have to select a
Metro City in the Property Details section of the |
| A: The Equity
Analysis section of the interview presents the YoY (Year over Year) change in
the OFHEO index for the metro city or the Metropolitan Statistical
Area' your city is affiliated with.This data allows users to see the
change in house prices in those MSAs over a period of time (historical
data) and choose the appropriate rates of appreciation (or decline) in
their city for their home for the future. The purpose is to provide data
that aids users in predicting different rates for the three scenarios in
this section. Although it s difficult to forecast home prices we
believe that the OFHEO data offers the best gauge for change in home prices
in the MSAs associated with your city. |
|
| Q: What if I cannot identify
a Metro City in the Property Details section of the interview? |
| A: Choose a Metro City closest to your city from the Metro City dropdown
menu. |
|
| Q: I am a first time home
buyer. How do I make that selection? |
| A: Please check the check box on the
Property Details (2/2) screen of the interview. |
|
| Q: Why can t I enter a
Length of Stay greater than 30 years? |
| A: Currently the Anawise report
restricts users to enter a length of stay no greater than the longest loan
term available in this interview i.e. 30 years. |
|
| Q: Do I enter the
downpayment % or downpayment in $s? |
| A: Please enter the downpayment in $s |
|
| Q: Is the Anawise report
currently restricted to fixed rate mortgages only? |
| A: Yes the Anawise
report allows you to prepare a financial summary only for fixed rate
mortgages. |
|
| Q: Should I enter the APR %
or the interest rate? |
| A: Only enter the interest rate in all input
fields that request this data. |
|
| Q: Why does the service
restrict the choice of loan terms to 15 or 30 years only? |
| A: Our research
suggests that these are the two most popular loan terms and so we have
currently restricted the choice of the loan term to these two
options. |
|
| Q: Why does the interview
request the Non-housing Loan Amount? |
| A: This input is requested for the
tax calculations. |
|
| Q: What is a balloon
mortgage? Is this input mandatory? |
| A: A balloon mortgage is a fixed rate fully
amortizing loan (amortizes over the loan term) but calls for a
lump sum payment also referred to as a balloon payment at the end of the
maturity or balloon period. |
|
| Q: Do I have to enter points
for the first as well as the second mortgage? |
| A: It depends. The
interview offers you the flexibility of entering the points you plan to pay
on your first and (or) second mortgage. Please enter the points as
applicable. |
|
| Q: How do I calculate the
annual property tax? |
| A: Determine the property tax rate for the property
you are preparing the analysis for. Typically, the property tax rate is
between 1-3% of the appraised value or sale price of the property.
Calculate the annual property tax by multiplying the appraised value of
the property by the property tax rate. |
|
| Q: How do I calculate the
annual home owner s insurance? |
| A: Home Owner s insurance is a policy that
typically includes hazard coverage, loss or damage of property as well
as well as coverage for personal liability and theft. There are
different policies based on the desired coverage. The most common type of
policy used by home owners is the HOI-3 policy. Annual Premiums can vary
between $500 - $ 1500 or higher based on the desired coverage. You can
call a licensed insurer for additional details. |
|
| Q: What is Private Mortgage
Insurance (PMI)? Do I need to pay PMI? If so, how much? |
A: If your
downpayment on a home is less than 20% of the appraise value or sale price,
you must obtain private mortgage insurance, known as PMI, from your
lender. This enables buyers to obtain a mortgage with lower down payment
because the lender is now protected against any default on the loan.
The PMI charge varies depending on the size of the loan, the
percentage of downpayment, credit score of the buyer, type of loan and
loan term, coverage % etc. Typical charges vary between 0.25% - 1% of
the loan amount for customers with FICO scores above 620. Click on this
link below at the PMI Group website for additional
detials:http://www.pmi-us.com/rates/
You can calculate the monthly
PMI payment by multiplying the PMI rate by the loan amount and dividing
the result by 12 (to calculate the monthly amount) |
|
| Q: What amount should I
enter for the input field Monthly Gross Income? |
| A: Please enter the total
monthly gross earnings for all the occupants of the houses who will be a
part of your mortgage loan application. Please note that this is
the amount prior to deduction on any taxes or other expenses and
deductions. |
|
| Q: What is monthly net
income? |
| A: Net income is the monthly gross income less any withholdings and
pre-tax deductions. |
|
| Q: What is the purpose of
the Equity Projection section? |
A: The equity projection section allows
you to model the equity in your home over the duration of your stay for
three different scenarios: Best Case, Most likely Case and Worst
Case. Equity is defined as the difference between the home price and the
loan balance, and is an excellent measure to understand your housing
net worth.
The Equity Analysis section of the interview of
the Anawise Report presents the YoY change in the OFHEO index for the
metro city or the Metropolitan Statistical Area your city is affiliated
with. This data allows users to see the change in house prices in those
MSAs over a period of time and choose the appropriate rates of
appreciation (or decline) in their city for their properties. |
|
| Q: How can I enter the rate
of increase (decline) in the price of my home in the Equity projection
|
| A: Please input the rate of increase (decline) in the input
fields. If you want to model for an increase, please choose + from the
drop-down menu or choose - from the drop down menu if you want to model a
decline in the price of your home. |
|
| Q: Why do I have to complete
the requested details in the Personal Taxes section? |
| A: The tax
benefit of a home is dependent upon several factors, but most importantly, if
you can itemize your deductions upon purchase of a home, the home may
be deemed to provide a tax benefit. The interview requests the details
to assess if the purchase of your home will offer you a tax benefit in
2007 & 2008. Please note you have to enter the anticipated amounts
for the year 2007. The analysis assumes that they remain the same for
2008. Please note that this data is used only to calculate the tax
benefit of your home. It will not be used for any other purpose. |
|
Mortgage FAQ’s 
