We are looking to refinance two houses.  One is a primary residence,
Hillview; the other is a secondary residence, Madison.  The loan
broker has told us about a loan program that is as follows:
Adjustable, based on COFI. 
No prepayment penalty
cap is 7.5 above payment amount

lifetime cap of 11.95 for Hillview, first residence 
                         12.4 for Madison second 

secondary residence add .45 because it is investment entry rate,
second 						    .65 because it is second
1.1	More 

Current interest rate is 2.950 with a margin of 2.7+(.65 = 3.35
Madison)
 					  Fully indexed 6.113
.8 is lender’s fee (hers), usually 1.0, but two loans.

Info: 

Current:
Madison	392		 
Hillview	572

		964
-	50  money we want to add
914	need to borrow

Options: 
1) Madison	300,000	low
Hillview	614,000	high
914,000

2) Madison	392,000	high
Hillview	522,000	low
		914,000

Question:  What will we pay now under Options 1 and 2, and what will
we pay in 3 years, if everything goes up as much as it can. In other
words, which one is better, option one or two?




	

 



No prepayment penalty
cap is 7.5 above payment amount

lifetime cap of 11.95 for Hillview, first residence 
                         12.4 for Madison second 

secondary residence add .45 because it is investment entry rate,
second 						    .65 because it is second
1.1	More 

Current interest rate is 2.950 with a margin of 2.7+(.65 = 3.35
Madison)
 					  Fully indexed 6.113
.8 is lender’s fee (hers), usually 1.0, but two loans.

Info: 

Current:
Madison	392		 
Hillview	572

		964
-	50  money we want to add
914	need to borrow

Options: 
1) Madison	300,000	low
Hillview	614,000	high
914,000

2) Madison	392,000	high
Hillview	522,000	low
		914,000

Question:  What will we pay now under Options 1 and 2, and what will
we pay in 3 years, if everything goes up as much as it can.


	

 



No prepayment penalty
cap is 7.5 above payment amount

lifetime cap of 11.95 for Hillview, first residence 
                         12.4 for Madison second 

secondary residence add .45 because it is investment entry rate,
second 						    .65 because it is second
1.1	More 

Current interest rate is 2.950 with a margin of 2.7+(.65 = 3.35
Madison)
 					  Fully indexed 6.113
.8 is lender’s fee (hers), usually 1.0, but two loans.

Info: 

Current:
Madison	392		 
Hillview	572

		964
-	50  money we want to add
914	need to borrow

Options: 
1) Madison	300,000	low
Hillview	614,000	high
914,000

2) Madison	392,000	high
Hillview	522,000	low
		914,000

Question:  What will we pay now under Options 1 and 2, and what will
we pay in 3 years, if everything goes up as much as it can.


	

 



No prepayment penalty
cap is 7.5 above payment amount

lifetime cap of 11.95 for Hillview, first residence 
                         12.4 for Madison second 

secondary residence add .45 because it is investment entry rate,
second 						    .65 because it is second
1.1	More 

Current interest rate is 2.950 with a margin of 2.7+(.65 = 3.35
Madison)
 					  Fully indexed 6.113
.8 is lender’s fee (hers), usually 1.0, but two loans.

Info: 

Current:
Madison	392		 
Hillview	572

		964
-	50  money we want to add
914	need to borrow

Options: 
1) Madison	300,000	low
Hillview	614,000	high
914,000

2) Madison	392,000	high
Hillview	522,000	low
		914,000

Question:  What will we pay now under Options 1 and 2, and what will
we pay in 3 years, if everything goes up as much as it can.