Typical Client Scenario
(you can follow along on the simulator with your own figures)
Loans
- Client has an existing 30 year fixed loan of $500,000 and a rate of 4%
- Home is worth $750,000
- Current P&I payment - $2,387
- They have had to loan for 24 months
- They are not making any additional principle payments (remember, once you make an additional principle payment to your mortgage, you can't get that money back out unless you refinance again)
- They have no 2nd mortgage
Deposits
- Husband makes $5,000 every 2 weeks (bi-weekly)
- Wife works part time and makes $3,000 a month
- No future lump sum deposits planned (this would only help pay off faster and save even more money)
Withdrawals
- They no longer have a typical mortgage payment due the 1st of every month, however, they have a family, so they are only able to save 20% of their take home pay each month (percentage left over). To some of you, that might seem high, but remember, you are not going to write a check any longer for your mortgage payment every month.
Results
In this scenario, staying consistent, the borrowers could have their mortgage paid off in 10.8 years and saved over $187,000 in interest charges from their typical 4%, 30 year fixed loan they are so happy with.
In order to save that much interest, they would have had to get a 30 year fixed loan at 2.08% (good luck with that, see effective rate below).
*Go down to the bottom of the results page of the simulator and make sure you have chose "rates increasing to historical average" and also a loan margin of 3.75% (you can always buy it down lower).
- Client has an existing 30 year fixed loan of $500,000 and a rate of 4%
- Home is worth $750,000
- Current P&I payment - $2,387
- They have had to loan for 24 months
- They are not making any additional principle payments (remember, once you make an additional principle payment to your mortgage, you can't get that money back out unless you refinance again)
- They have no 2nd mortgage
Deposits
- Husband makes $5,000 every 2 weeks (bi-weekly)
- Wife works part time and makes $3,000 a month
- No future lump sum deposits planned (this would only help pay off faster and save even more money)
Withdrawals
- They no longer have a typical mortgage payment due the 1st of every month, however, they have a family, so they are only able to save 20% of their take home pay each month (percentage left over). To some of you, that might seem high, but remember, you are not going to write a check any longer for your mortgage payment every month.
Results
In this scenario, staying consistent, the borrowers could have their mortgage paid off in 10.8 years and saved over $187,000 in interest charges from their typical 4%, 30 year fixed loan they are so happy with.
In order to save that much interest, they would have had to get a 30 year fixed loan at 2.08% (good luck with that, see effective rate below).
*Go down to the bottom of the results page of the simulator and make sure you have chose "rates increasing to historical average" and also a loan margin of 3.75% (you can always buy it down lower).
*TIP - Every household's results will be different. I can walk you through the simulator, no problem. We can discuss if it would work for you, your household and your situation. This loan is not for everybody. But, for the right household, it is amazing.
Call or email me today and let's see what your numbers turn out to be!