Maryland For Sale By Owner (FSBO) Support

Maryland FSBO Database
Supporting For Sale by Owner Home Sellers

Financing

Create a payment analysis. Show what the buyer can expect to pay monthly by showing various scenarios with different down payments. Below is a sample.

.	10% Down 30-yr fixed	10% Down 1-yr ARM	20% Down 30-yr fixed	20% Down 1-yr ARM
Purchase Price	$100,000	$100,000	$100,000	$100,000
Down payment	$10,000	$10,000	$20,000	$20,000
Loan Amount	$90,000	$90,000	$80,000	$80,000
Mthly Payment	$660.39	$539.60	$587.01	$479.64

Using a sample rate of 8% for a 30-yr fixed and 6% for an ARM

You can run various scenarios by using a Qualifying Calculator. You will need to know the following:

Gross monthly income

Monthly debt payments (car, loans, etc.)

Monthly taxes, property insurance, Private Mortgage Insurance (PMI) and Association Fees

Interest rate - Use a 30-yr fixed rate and a 1-yr adjustable rate

Length of mortgage (Years) - Use 30 years

Down payment ($) - Use 10% and 20%

Your information packet should also include current rate information from at least 3 different lenders. Be sure to include interest rates for a 30 yr. fixed rate mortgages, as well as, one-year adjustable mortgages.

It's not necessary to include a mortgage application in the information packet, but you should have it handy to show prospective buyers.

Qualifying Formula:
Housing Expense - Up to 28% of Gross Income. Housing expense includes principal, interest, taxes and insurance.
Total Debt Ratio - Up to 36% of Gross Income.

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