Rates, Variables, & Assumptions
See below for all rates, variables, and assumptions used to calculate our claims.
LOAN COMPARISON:
Primary Residence (Non-Texas Homestead)
Estimated Home Value: $600,000.00
Loan Balance: $450,000.00
Loan Type: 30-Year Fixed
Interest Rate: 5%
Age In Months (1-360): 1
Monthly P&I Payment: $2,415.70
RESULTS
All In One Loan:
Years 12.8
Total Principal: $450,000.00
Total Interest: $275,763.21
Payments: 154
Total Expense: $725,763.21
Total Saved: $143,886.54
Traditional Mortgage:
Years 30.0
Total Principal: $450,000.00
Total Interest: $419,649.76
Payments: 360
Total Expense: $869,649.76
DEPOSITS
Repeating Deposit 1: $10,000.00 Monthly
One Time Deposit 1: $50,000.00 Month 2
SPENDING
Traditional Loan Payment: $2,415.70
Est. Taxes & Insurance: $783.33
Other Monthly Expenses: $4,800.97
Percentage Leftover: 20%
Monthly Leftover: $2,000.00
PAYDOWN SUMMARY
All-In-One HELOC:
Average Minimum Monthly Payment: $1,790.67
Average Principal Reduced Monthly: $2,922.08
Average Principal Reduced Annually: 7.8%
Interest as a Percent of Principal: 61.3%
Comparison Loan Effective APR: 3.481%
Breakeven Average Rate: 10.733%
Traditional Loan:
Minimum Monthly Payment: $2,415.70
Average Principal Reduced Monthly: $1,250.00
Average Principal Reduced Annually: 3.3%
Interest as a Percent of Principal: 93.3%
Average Loan APR: 5.000%
RATES & ASSUMPTIONS
Rate Term Option: 1 Month Adjustable
Loan Margin: 2.500%
Index: 4.780%
Initial Rate: 7.280%
Floor Rate: 3.750%
Maximum Rate: 13.280%
Rate Trend: Initial Rate + 2.000%
Average Rate Used: 9.067%
Results are from Dec. 15, 2022, driven by the starting loan balance, rate, rate environment, deposits, and withdrawal activity. Margins have risen since then. Speak with us, your Northpointe Loan Advisors, anytime for more information.