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: $400,000.00
Loan Type: 30-Year Fixed
Interest Rate: 4.250%
Age In Months (1-360): 1
Monthly P&I Payment: $1,970.47
RESULTS
All In One Loan:
Years 11.6
Total Principal: $400,000.00
Total Interest: $147.925.21
Payments: 139
Total Expense: $547,925.21
Total Saved: $159,476.66
Traditional Mortgage:
Years 30.0
Total Principal: $400,000.00
Total Interest: $307,401.87
Payments: 359
Total Expense: $707,401.87
DEPOSITS
Monthly Deposit 1: $10,000.00
Additional Deposit: $0
SPENDING
Traditional Loan Payment: $1970.47
Est. Taxes & Insurance: $783.33
Other Monthly Expenses: $5,246.20
Percentage Leftover: 20%
Monthly Leftover: $2,000.00
PAYDOWN SUMMARY
All-In-One HELOC:
Average Minimum Monthly Payment: $1,064.21
Average Principal Reduced Monthly: $2,877.70
Average Principal Reduced Annually: 8.600%
Interest as a Percent of Principal: 37.000%
Comparison Loan Effective APR: 2.216%
Breakeven Average Rate: 8.333%
Traditional Loan:
Minimum Monthly Payment: $1970.47
Average Principal Reduced Monthly: $1,114.21
Average Principal Reduced Annually: 3.3%
Interest as a Percent of Principal: 76.9%
Average Loan APR: 4.250%
RATES & ASSUMPTIONS
Rate Term Option: 1 Month Adjustable
Loan Margin: 3.000%
Index: 4.780%
Initial Rate: 7.780%
Floor Rate: 3.750%
Maximum Rate: 13.780%
Rate Trend: Historical Avg.
Average Rate Used: 5.611%
Results are from Dec. 15, 2022, driven by the starting loan balance, rate, rate environment, deposits, and withdrawal activity. Speak with us, your Northpointe Loan Advisors, anytime for more information.