…….Which loan is right for
you?
3/1
ARM 5/1 ARM 7/1 ARM 30 Yr Fixed
Loan
amount $200,000 $200,000 $200,000 $200,000
Interest
Rate 6.00% 6.25% 6.625 7.00%
Amortized
over 30 years 30 years 30 years 30
years
P & I Payment $1,199 $1,231 $1,281 $1,331
Savings
per month $132 $99 $50 $0
Although this table will show
you which loan will provide you the lowest payment, such a loan may not be the
right loan for your financial situation.
Total
Cost Analysis for 60 Months:
Total
Payments $71,946 $73,886 $76,837 $79,836
Principal
Paid $13,891 $13,326 $12,511 $11,737
Interest
Paid $58,055 $60,561 $64,326 $68,099
Balance
Left $186,109 $186,674 $187,489 $188,263
Closing
Cost $2,800 $2,800 $2,800 $2,800
Total
Cost $60,855 $63,361 $67,126 $70,899
Net
Savings $10,045 $7,539 $3,773 $0
Simply
comparing the payment that a loan offers cannot make a true loan comparison.
There are various other fees and issues which effect the overall cost of a
loan. The table above analyzes the difference in total overall cost of your
home loan. Evaluating the total cost is the key to selecting the lowest
cost mortgage for your individual needs.
Term
Reduction:
Reduction
per month $132 $99 $50 $0
Equity
Increase in 5 yrs $9,210 $6,952 $3,545 $0
Equity
Increase in 10 yrs $21,632 $16,446 $8,478 $0
Equity
Increase in 15 yrs $38,388 $29,413 $15,342 $0
Debt
Free in 23.2
yrs 24.5 yrs 26.8 yrs 30 yrs
Total
Interest Saved $60,355 $52,076 $33,042 $0
You can become debt free faster by applying monthly
savings each and every month towards the principal of your mortgage loan.
Additionally, these consistent prepayments may also save you thousands and
thousands of dollars in interest savings over the life of your loan.
Asset
Accumulation:
Payment
per month $132 $99 $50 $0
Accumulation
over 3 yrs $5,351 $4,013 $2,027 $0
Accumulation
over 4 yrs $7,438 $5,579 $2,817 $0
Accumulation
over 5 yrs $9,699 $7,274 $3,674 $0
Assets
> Mortgage 21.8
yrs 23.3 yrs 26.2 yrs 30 yrs
Total
Accumulation $196,727 $147,546 $74,518 $0
You can increase your cash
assets by placing your monthly savings dollars each month into an annuity or
investment account that may eventually accumulate total assets exceeding your
mortgage.
Please feel free to reach out. We at Supreme Lending Tahoe Team are happy to discuss all your options and determine which financing is right for you!
David Colarchik
Branch Manager NMLS #300510
775.832.6522
David.Colarchik@SupremeLending.com
264 Village Boulevard, Suite 2B
Incline Village, NV 89451
Text ‘Dave’ to 313131 to
download my mobile app
Disclaimer:
The views and opinions expressed on this site about work-related
matters are my own, have not been reviewed or approved by Supreme Lending, and
do not necessarily represent the views and opinions of Supreme Lending. In no
way do I commit Supreme Lending to any position on any matter or issue without
the express prior written consent of Supreme Lending’s Human Resources Department.
Branch Manager: David Colarchik
Main: 775-833-7100 | Direct: 775-832-6522 | Fax: 775-833-7108
264 Village Blvd Suite 2B, Incline Village, NV 89451
David.Colarchik@supremelending.com
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