Shorter Term Builds Equity!

 Stay, Regain Equity:  HOW refinancing at a shorter term with lower rate regains equity quickest!

Compare current 30 YR Fixed to 20, 15 and 10 year terms at lower rates

See difference of 1)Number of yrs./mo’s when positive equity returns, 2)Difference in payments, 3)Greater principal gained and 4)Lesser interest paid.

Current loan amt.: $250,000

Current home value: $160,000

Current 30 YR Fixed Rate: 6.0%

$90,000 negative equity at 156%LTV

Actual equity increases faster per yearly appreciation %. Below equity build up does not include avg. yearly appreciation.


Current 30 YR amortization at 6.0%=positive equity at *17.33 years

*If loan refinanced today. On existing loan, deduct # yrs. of equity buildup  already incurred on 30 yr amortization (ie. original mortgage date – current date = #/yrs to deduct)

Current Principal and Interest pymt: $1498.88

6.0 at 30 yrs

 


20 YR amortization at 4.5% = positive equity at 9.41 years

1) Number of yrs./mo’s when positive equity returns: 9 yrs, 5 mo’s

2) Difference in payments: $82.74/mo higher (total PI: $1581.62)

3) Greater principal gained: $31,723.62 ($280.74 x 113 mo’s)

4) Lesser interest paid: -$22,374.00 (-$198.00 x 113 mo’s)

4.5 at 20 yrs

 


15 YR amortization at 4.0% = positive equity at 6.5 years

1) Number of yrs./mo’s when positive equity returns: 6 yrs, 6 mo’s

2) Difference in payments: $350.56/mo higher (total PI: $1849.22)

3) Greater principal gained: $47,874.06 ($613.77 x 78 mo’s)

4) Lesser interest paid: -$22,374.00 (-$263.43 x 78 mo’s)

4 at 15 yrs

 


10 Year Amortization at 3.75% = positive equity at 4.08 years

1) Number of yrs./mo’s when positive equity returns: 4 yrs, 1 mo

2) Difference in payments: $1002.65/mo higher (total PI: $2501.53)

3) Greater principal gained: $63,670.11 ($1299.39 x 49 mo’s)

4) Lesser interest paid: -$14,540.26 (-$296.75 x 49 mo’s)

3.75 at 10 yrs.best