Home Equity Conversion Mortgage Payment Play

HOME EQUITY CONVERSION MORTGAGE PAYMENT PLAN

Date of Payment Plan: __________________

FHA Case Number: _______________________

Name of Lender: ___________________________________________

Name of Borrower(s) Birthdate(s)

________________________________________ ___/___/___

________________________________________ ___/___/___

________________________________________ ___/___/___

Expected Average Mortgage Interest Rate ___________%

______________________________________________________________________

1. Principal Limit $_________

Initial Payments (if completed at closing)

2. Closing Costs $________

3. Discharge of Liens $________

4. Outstanding Balance

(if completed after closing) $________

5. Loan Advance $________

6. Servicing Fee Set Aside $________

7.Total Deductions from Principal Limit

(Lines 2 + 3 + 4 + 5 + 6) $_________

______________________________________________________________________

8. Principal Limit for Line of Credit $_________

Funds in Line of Credit Designated for:

9. Repairs $_________

10. First Year Property charges $_________

11.Outstanding Balance on Line of Credit

from previous payments $_________

12.Total Deductions from Principal Limit for

Line of Credit (Lines 9 + 10 + 11) $_________

13.Funds Available to Borrower in Line of Credit

(Lines 8 - 12) $_________

______________________________________________________________________

14. Net Principal Limit (lines 1 - 7 - 9 - 10) $_________

______________________________________________________________________

15.Net Principal Limit Available for Monthly Payments

(Lines 14 - 13) $_________

Scheduled Payments:

16. Term (Remaining) ___ ___ Yrs. ___ Mos.

or

17. Tenure ___ (check only one: term or tenure)

18. Monthly Payment (Total) $_________

19. Monthly Withholding (T & I) $_________

20. Net Monthly Payment (Lines 18 - 19) $_________

(For graduated monthly payments from a line of credit, see attached

schedule.)

______________________________________________________________________

By signing below, the borrower(s) agree(s) that this document accurately

describes the principal features of the current payment plan chosen by the

borrower(s).

___________________________________ __________

Signature Date

___________________________________ __________

Signature Date

INSTRUCTIONS FOR COMPLETING THE BORROWER'S PAYMENT PLAN

The form on Pages 1 and 2 of this Appendix is completed both at closing and

whenever the borrower chooses a different payment option or has his or her

payment plan re-calculated. If the form is completed at closing, it must

be attached to the Loan Agreement (Appendix 7).

Line 1. The borrower's current principal limit is entered on this line,

whether the form is completed at closing or after the mortgage

has closed. This figure is calculated according to the

instructions in Chapter 5.

Line 2. Any closing costs to be financed by the mortgage are to be

entered on this line when the mortgage is closed.

Line 3. The amount of any debts to be paid off at closing should be

entered on this line. These debts include existing liens on the

property and delinquent Federal debts. Liens on the property

which will be subordinated should not be entered on this line.

Line 4. The current outstanding balance on the mortgage should be entered

on this line if the form is completed after closing. The

outstanding balance is the amount of any payments made to or on

behalf of the borrower in form of line of credit or monthly

payments plus any interest and fees that have accrued since those

payments were made.

Line 5. The amount of any payment made to the borrower at closing, or as

an unscheduled payment accompanying a payment plan change after

closing, should be entered on this line.

Line 6. The amount necessary to pay for servicing costs for the life of

the mortgage should be entered on this line. This amount is set

aside from the principal limit at closing and a fee is disbursed

from these funds monthly to cover servicing costs. Refer to

Chapter 5 for instructions regarding servicing fee set aside

calculations.

Line 7. The total of Lines 2 through 6 is entered on this line.

Line 8. The current principal limit for the borrower's line of credit

should be entered on this line. At closing, this figure is

simply the amount set aside by the borrower for the line of

credit, including funds for repairs and property charges. After

closing, this figure is the present value of any funds previously

set aside for the line of credit, plus any additional funds the

borrower wishes to set aside, or, minus any funds that the

borrower wishes to remove from the line of credit to allot to

monthly payments at the time the form is completed. Refer to

Chapter 5 for calculations.

Line 9. The amount of funds necessary to pay for required repairs should

be entered on this line. The amount can be found on the Repair

Rider to the Loan Agreement completed at closing. If this form

is completed after closing, the line should have any funds

remaining for required repairs that have not been completed.

Refer to Chapter 3 for repair requirements.

Line 10. The amount of any funds, owed by the borrower, necessary to pay

for property charges to be assessed during the first year of the

mortgage, that can not be collected after the mortgage has

closed, should be entered on this line.

Line 11. The outstanding balance on the borrower's line of credit should

be entered on this line. This figure is the sum of any payments

made from the borrower's line of credit plus any interest that

has accrued on those payments since they were made. The

outstanding balance on any payments made from the line of credit

must be kept separate from the outstanding balance on any other

payments made from the mortgage.

Line 12. The total of Lines 9 through 11 should be entered on this line

and is the amount that is deducted from the principal limit for

the line of credit to determine the amount of funds available to

the borrower from the line of credit.

Line 13. The difference between Lines 8 and 12 should be entered on this

line. This is the net principal limit for the borrower's line of

credit, or the amount available to the borrower from the line of

credit at the time that this form is completed.

Line 14. The result of subtracting Lines 7, 9 and 10 from Line 1 is

entered on this line and is the borrower's net principal limit,

or the amount available to the borrower at the time the form is

completed, through any combination of a cash advance, line of

credit payment, or monthly payments.

Line 15. The difference between Lines 14 and 13 should be entered on this

line. This figure is the net principal limit for monthly

payments, or the amount of funds available to the borrower that

can be paid out monthly.

Line 16. This line should be completed if the borrower wishes to receive

monthly payments for a specified term. The term chosen by the

borrower should be entered next to the selection. If the form is

completed after closing, and the borrower is not changing the

term previously chosen, the remaining time left in the term

should be entered.

Line 17. This line should be completed if the borrower wishes to receive

monthly payments for the rest of his or her life, as long as he

or she remains in the home.

Line 18. The monthly payment calculated from the formula in Appendix 22

should be entered in this line. Refer to Chapter 5 for

instructions regarding monthly payment calculations.

Line 19. The monthly amount necessary to cover one-twelfth (1/12) of the

borrower's annual property charges should be entered on this

line. This amount is deducted from the borrower's monthly

payment but is not added to the outstanding balance until the

charges are actually paid.

Line 20. The difference between Lines 18 and 19 should be entered on this

line. This figure is the actual monthly payment that the

borrower will receive.

If the lender and the borrower have established a graduated payment

schedule from the funds available in the borrower's line of credit, that

schedule should be attached to this form.