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.