For a Primary Residence Located In Oregon

March 16, 2003

Prepared for:

Roger Smith

Prepared by:

MICHAEL SMITH

Po Box 3236

"Your Bank"

Sunriver, Or 97707

714 Main Street

Portland, OR 97058

Phone:

541-593-1756

Phone:

(541) 884-3444

Fax:

541-593-1756

Fax:

(541) 884-6515

Branch Contact:

Branch Phone:

Branch Name:

Branch Fax:

Rates Effective February 13, 2003 @ 8:50AM for a 45 Day Lock.

(C30F) CONF 30 YR FIXED

Purchase Price

$150,000.00

Loan-to-Value (LTV)

80.00%

Base Amount

$120,000.00

Note Amount

$120,000.00

Loan Term (Months)

360

Initial Interest Rate

5.500%

5.750%

6.000%

6.250%

Qualifying Interest Rate

5.500%

5.750%

6.000%

6.250%

Index

N/A

Margin

N/A

Interest Rate Caps

N/A

Lifetime Maximum Rate (Ceiling)

N/A

Annual Percentage Rate (APR)

5.756%

5.891%

6.037%

6.216%

801

Loan Origination Fee

1.000%

-0.125%

-0.875%

802

Loan Discount

1.250%

0.000%

Estimated Monthly Payments

Principal and Interest

$681.35

$700.29

$719.47

$738.87

Property Taxes

$187.50

Hazard Insurance

$50.00

Total Monthly Housing Expense

$918.85

$937.79

$956.97

$976.37

Items Payable in Connection With Loan

801

Loan Origination Fee

$1,200.00

-$150.00

-$1,050.00

802

Loan Discount

$1,500.00

$0.00

803

Appraisal Fee

$450.00

804

Credit Report Fee

$20.00

805

Lender's Inspection Fees

809

Processing Fee

810

Tax Lien Service Fee

$65.00

812

Flood Hazard Determination Fee

$16.00

813

Document Preparation Fee

814

Administrative Fee

$500.00

815

Courier Fee

816

Guarantee Fee

817

1101

Settlement or Closing Fee

$180.00

1108

Title Insurance

$203.75

1201

Recording Fees

$115.00

Total Estimated Closing Costs

$4,249.75

$2,749.75

$1,399.75

$499.75

Items Required by Lender to be Paid in Advance & Reserve Deposit Requirements

901

Pre-Paid Interest (2 Days)

$36.16

$37.80

$39.46

$41.10

903

Hazard Insurance Premium (1st Year)

$600.00

1001

Hazard Insurance Reserve

$100.00

1002

Mortgage Insurance Reserve

1004

County Property Tax Reserve (8 Months)

$1,500.00

Total Estimated Prepaids & Reserves(3)

$2,236.16

$2,237.80

$2,239.46

$2,241.10

Downpayment

$30,000.00

Estimated Total Closing Costs

$4,249.75

$2,749.75

$1,399.75

$499.75

Estimated Total Prepaids

$2,236.16

$2,237.80

$2,239.46

$2,241.10

Upfront Deposit

($470.00)

Earnest Money

($5,000.00)

Estimated Funds Needed at Closing

$31,015.91

$29,517.55

$28,169.21

$27,270.85

Income Qualification Estimates Based On Qualifying Interest Rate (Other Factors Are Considered In Qualifying)

Minimum Gross Monthly Income

$2,784.39

$2,841.79

$2,899.91

$2,958.70

Maximum Monthly Debt

$194.91

$198.93

$202.99

$207.11

Actual/Allowable Housing Ratio

29.64% / 33.00%

30.25% / 33.00%

30.87% / 33.00%

31.50% / 33.00%

Actual/Allowable Debt Ratio

36.09% / 40.00%

36.70% / 40.00%

37.32% / 40.00%

37.95% / 40.00%

Residual Payments at Closing (2 months)

$1,837.70

$1,875.58

$1,913.94

$1,952.74

To Receive a Free Qualification Analysis, Please Call (541) 884-3444

Reference: 38111177 112 3111

(1) Apportion to seller as customary to market or as negotiated in purchase offer.

(2) Apportion to buyer and seller as customary to market or as negotiated in purchase offer. Rates vary by title company.

(3) The initial amount you will pay at closing to establish an impound/escrow account, if required, is estimated. The actual amount collected at closing will be determined based upon your first payment due date and the date your hazard insurance and real estate taxes become due and payable. Federal law requires us to use an aggregate accounting method to determine the amount collected at closing which will always result in a different amount than estimated here.

This is not a commitment to lend. Bank policy requires submission of a complete application including supporting documentation. Loan approval is subject to the borrower and the property meeting bank requirements. Rates and terms subject to change without notice. All information is estimated.

Rev. 1/31/2003

3/16/03 6:04 PM