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| LOAN SUMMARY | 30 FRM Baseline | 5/1 ARM (Best) | 5/1 ARM (Flat Index) | 5/1 ARM (grdual
.125% incr) |
5/1 ARM (faster
.25% incr.) |
5/1 ARM (Worst Case) |
| Loan Type | Conventional | Conventional | Conventional | Conventional | Conventional | Conventional |
| Rate Type | Fixed + Equity | ARM + Equity | ARM + Equity | ARM + Equity | ARM + Equity | ARM + Equity |
| Loan Amount | $248,000.00+$41,000.00 | $248,000.00+$41,000.00 | $248,000.00+$41,000.00 | $248,000.00+$41,000.00 | $248,000.00+$41,000.00 | $248,000.00+$41,000.00 |
| Interest Rate | 5.625%/5.000% | 4.500%/5.000% | 4.500%/5.000% | 4.500%/5.000% | 4.500%/5.000% | 4.500%/5.000% |
| Term | 30 Yr./30 Yr. | 30 Yr./30 Yr. | 30 Yr./30 Yr. | 30 Yr./30 Yr. | 30 Yr./30 Yr. | 30 Yr./30 Yr. |
| APR (est.) | 5.909%/5.000% | 4.444%/5.000% | 4.444%/5.000% | 4.444%/5.000% | 4.444%/5.000% | 4.444%/5.000% |
| Property Appreciation (annual) | -5% | -5% | -5% | -5% | -5% | -5% |
| Est. Property Value (@ end of yr. 9) | $195,377.32 | $195,377.32 | $195,377.32 | $195,377.32 | $195,377.32 | $195,377.32 |
| Projected increase to index | Best Case | No Change | + .125% / Adj. | + .25% / Adj. | Worst Case | |
| MONTHLY PAYMENT SUMMARY | 30 FRM Baseline | 5/1 ARM (Best) | 5/1 ARM (Flat Index) | 5/1 ARM (grdual
.125% incr) |
5/1 ARM (faster
.25% incr.) |
5/1 ARM (Worst Case) |
| Total Monthly Payment | $1,598.46 | $1,427.41 | $1,427.41 | $1,427.41 | $1,427.41 | $1,427.41 |
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| PAYMENT SAVINGS | $0.00 | $171.05 | $171.05 | $171.05 | $171.05 | $171.05 |
| ANNUAL COST COMPARISON | 30 FRM Baseline | 5/1 ARM (Best) | 5/1 ARM (Flat Index) | 5/1 ARM (grdual
.125% incr) |
5/1 ARM (faster
.25% incr.) |
5/1 ARM (Worst Case) |
| The baseline proposal is displayed in black. For each respective proposal, cost savings (with respect to the baseline) are shown in green and cost increases are shown in red. | ||||||
| Net Cost Ending Yr. 1 | $32,972.28 | $1,814.84 | $1,814.84 | $1,814.84 | $1,814.84 | $1,814.84 |
| Net Cost Ending Yr. 2 | $57,920.60 | $3,624.36 | $3,624.36 | $3,624.36 | $3,624.36 | $3,624.36 |
| Net Cost Ending Yr. 3 | $82,003.11 | $5,429.27 | $5,429.27 | $5,429.27 | $5,429.27 | $5,429.27 |
| Net Cost Ending Yr. 4 | $105,249.13 | $7,227.84 | $7,227.84 | $7,227.84 | $7,227.84 | $7,227.84 |
| Net Cost Ending Yr. 5 | $127,685.72 | $9,018.14 | $9,018.14 | $9,018.14 | $9,018.14 | $9,018.14 |
| Net Cost Ending Yr. 6 | $149,337.74 | $13,355.05 | $11,529.80 | $10,615.03 | $9,699.03 | $7,864.00 |
| Net Cost Ending Yr. 7 | $170,227.90 | $17,645.20 | $14,021.62 | $12,021.78 | $10,015.65 | $3,817.40 |
| Net Cost Ending Yr. 8 | $190,376.83 | $21,882.52 | $16,490.03 | $13,241.98 | $9,976.68 | $3,089.18 |
| Net Cost Ending Yr. 9 | $209,803.10 | $26,060.33 | $18,931.13 | $14,279.48 | $9,591.47 | $10,358.91 |
| Net Cost Ending Yr. 10 | $228,523.31 | $30,171.61 | $21,340.77 | $15,138.59 | $8,870.26 | $17,631.76 |
 | ||||||
| EXTRA PAYMENT SUMMARY | 30 FRM Baseline | 5/1 ARM (Best) | 5/1 ARM (Flat Index) | 5/1 ARM (grdual
.125% incr) |
5/1 ARM (faster
.25% incr.) |
5/1 ARM (Worst Case) |
| The cost savings and equity increase shown are at the end of year 9. Additionally, the revised term and total cost savings are listed. | ||||||
| Extra Payment | $0.00/mo. | $171.05/mo. | $171.05/mo. | $171.05/mo. | $171.05/mo. | $171.05/mo. |
| NET COST REDUCTION | $28,391.56 | $21,621.68 | $17,106.33 | $12,437.13 | $6,939.52 | |
| EQUITY INCREASE | $32,317.02 | $25,650.63 | $20,940.44 | $15,829.06 | $10,892.43 | |
|
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| REVISED TERM | N/A | 20 Yr. 5 Mo. | 22 Yr. 5 Mo. | 25 Yr. 9 Mo. | N/A | N/A |
| TOTAL COST SAVINGS | $25,498.30 | $32,158.96 | $37,924.69 | $14,819.59 | $14,209.46 | |
| INVESTMENT SUMMARY | 30 FRM Baseline | 5/1 ARM (Best) | 5/1 ARM (Flat Index) | 5/1 ARM (grdual
.125% incr) |
5/1 ARM (faster
.25% incr.) |
5/1 ARM (Worst Case) |
| Compounding return and investment balance are shown at the end of year 9 and are based on an investment rate of 10.000% in a tax deferred investment such as a retirement fund and a marginal tax rate of 35.0% (MFJ). | ||||||
| Starting Monthly Investment |
$0.00/mo. | $171.05/mo. | $171.05/mo. | $171.05/mo. | $171.05/mo. | $171.05/mo. |
| Monthly Investment Ending Yr. 9 |
$0.00/mo. | $384.74/mo. | $234.34/mo. | $109.15/mo. | $0.00/mo. | $0.00/mo. |
| Total Investment | $28,730.52 | $21,511.32 | $16,591.44 | $11,723.76 | $10,263.00 | |
| Compounding Return | $13,942.43 | $12,256.19 | $11,219.29 | $10,155.94 | $9,628.73 | |
| INVESTMENT BALANCE | $42,672.95 | $33,767.51 | $27,810.73 | $21,879.70 | $19,891.73 | |
| RESULTS SUMMARY | 30 FRM Baseline | 5/1 ARM (Best) | 5/1 ARM (Flat Index) | 5/1 ARM (grdual
.125% incr) |
5/1 ARM (faster
.25% incr.) |
5/1 ARM (Worst Case) |
| The section illustrates 3 scenerios; (A) Results of costs/savings in simple, plain cash (B) Results of costs/savings when applied to immediate principal reduction and (C) Results of costs/savings when applied to a compounding investment. All cost reduction values shown are at the end of year 9. | ||||||
| (A) Results of simple cash | ||||||
| Cost reduction ending yr. 9 | $26,060.33 | $18,931.13 | $14,279.48 | $9,591.47 | $10,358.91 | |
| Term | 30 Years | 30 Years | 30 Years | 30 Years | 30 Years | |
| (B) Results when applied to principal |
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| Cost reduction ending yr. 9 | $28,391.56 | $21,621.68 | $17,106.33 | $12,437.13 | $6,939.52 | |
| Revised Term | 20 Yr. 5 Mo. | 22 Yr. 5 Mo. | 25 Yr. 9 Mo. | 30 Years | 30 Years | |
| (C) Results when applied to compounding investment |
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| Cost reduction ending yr. 9 | $40,002.76 | $31,187.32 | $25,498.77 | $19,747.41 | $730.18 | |
| Investment > Mortgage | 17 Yr. 10 Mo. | 20 Years | 23 Yr. 6 Mo. | 25 Yr. 9 Mo. | 26 Yr. 6 Mo. | |