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© 2017 Regions Bank.
YOUR ROAD TO HOME OWNERSHIP
© 2017 Regions Bank.3
REGIONS FINANCIAL FUNDAMENTALS
This information is general in nature and is not intended to be legal, tax, or
financial advice. Although Regions believes this information to be accurate, it
cannot ensure that it will remain up to date. Statements or opinions of individuals
referenced herein are their own—not Regions'. Consult an appropriate
professional concerning your specific situation and irs.gov for current tax rules.
© 2017 Regions Bank.
YOURROAD TO HOME OWNERSHIP
[Add your nameand title here]
40 Minutes
4 © 2017 Regions Bank.
© 2017 Regions Bank.
1. What are the pros and cons of owning a home?
2. What are the basics about mortgages that I need to know before buying a home?
3. What’s involved in the mortgage application process?
AGENDA
Today we will focus on these big questions . . .
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This information is general in nature and is not intended to be legal, tax, or financial advice. Although Regions believes this information to be accurate, it cannot ensure that it will remain up to date. Statements or opinions of individuals referenced herein are their own—not Regions'. Consult an appropriate professional concerning your specific situation and irs.gov for current tax rules.
© 2017 Regions Bank.6
whyown a home?
© 2017 Regions Bank.
© 2017 Regions Bank.8
HOMEOWNER RENTER
1st Year Annual Monthly Payment (including taxes
& insurance)$ 9,600.00 $ 9,600.00
Tax Deductions/Equity Builders
Mortgage Interest Deduction* - $5,188.38 $0.00
Property Taxes Deduction* - $1,200.00 $0.00
Mortgage Equity (Principal Repayment) - $1,697.38 $0.00
1st Year Effective Costs $1.514.24 $ 9,600.00
After 10 Years
Mortgage Equity (Principal Repayment) $ 21,205.34 $0.00
Appreciation after 10 years $5,625.00 $0.00
Total Estimated Equity vs. Rent Expense $ 26,830.34 $ 110,028.00
Initial Rent = $800Annual rent increase = 3%
Property value = $110,000Mortgage payment = $800Annual appreciation = 5%
Rent AssumptionsOwnership Assumptions
OWNING VS. RENTING
* Assuming taxpayer is using itemized deductions. Consult with yourtax advisor for how this would effect your taxes.
© 2017 Regions Bank.9
risksand responsibilities
© 2017 Regions Bank.10
readyare you
to buy a home?
© 2017 Regions Bank.
© 2017 Regions Bank.11
ARE YOU FINANCIALLY PREPARED?
© 2017 Regions Bank.13
What is a mortgage?
What is included in a monthly mortgage payment?
What is an escrow account?
What is the difference between pre-qualified and pre-approved?
What Do You Know About Mortgages?
© 2017 Regions Bank.
© 2017 Regions Bank.14
What Do You Know? What is a mortgage?
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© 2017 Regions Bank.15
INTEREST
TAXES
INSURANCE
PRINCIPAL
MONTHLY PAYMENT
WHAT TYPICALLY IS INCLUDED IN AMONTHLY PAYMENT?
© 2017 Regions Bank.1717
What Do You Know? What is an escrow account?
© 2017 Regions Bank.1919
What Do You Know? What is pre-qualification?
© 2017 Regions Bank.2020
What Do You Know? What is pre-approval?
© 2017 Regions Bank.21
why get pre-approved?
© 2017 Regions Bank.
© 2017 Regions Bank.22
TYPES OF MORTGAGE
PRODUCTS
FIXED-RATE MORTGAGE
ADJUSTABLE-RATE MORTGAGE
© 2017 Regions Bank.
YOU MAKE THE CALL
ISAAC
ELLA
MARIA & ANTHONY
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© 2017 Regions Bank.
CAPITAL
COLLATERAL
CHARACTER
CAPACITY
CREDIT
THE 4 Cs OF CREDIT
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© 2017 Regions Bank.25
POINTS
APR
PRE-PAYMENT PENALTY
APR
POINTS
PRE-PAYMENT PENALTY
MORTGAGE FEES QUIZ
1. A fee if you pay off your mortgage early
2. A fee equal to a percentage of the total principal amount of your mortgage; usually collected at closing
3. Includes the interest rate and other fees included over the life of a loan; shows the total annual cost of borrowing
© 2017 Regions Bank.27
Your personal and financial information helps the lender make decisions about your mortgage application.
© 2017 Regions Bank.
© 2017 Regions Bank.
MORTGAGE COSTS
APPRAISAL FEES
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DOWN PAYMENT
CLOSING COSTS
EARNEST MONEY
HOME INSPECTION FEES
© 2017 Regions Bank.© 2017 Regions Bank.30
CLO
SIN
G P
RO
CES
S
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CLO
SIN
G P
RO
CES
S
© 2017 Regions Bank.33
Empower yourself…
Understand common terms, your rights
and what to expect throughout the
mortgage process.
© 2017 Regions Bank.
© 2017 Regions Bank.34
Homeownership comes with initial
and ongoing costs…AND many
benefits.
© 2017 Regions Bank.
© 2017 Regions Bank.
CONGRATULATIONS
Today, you will leave with:
The pros and cons of owning a home
The basics about mortgages
What you need to know before buying a home
What’s involved in the mortgage application and closing process
Thank you.
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© 2017 Regions Bank.
Learn More About Meeting Your Financial Goals
Make an appointment with a Regions banker:
Call the Regions Home Loan Direct Center at 1-877-536-3286
Go to regions.com and locate a Mortgage Loan Originator
Visit any Regions branch
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Visit the Regions Financial Learning Center for free, online interactive videos: Regions.com/learn
Use our online resources including articles, videos, and calculators:
Regions.com/insights
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