Moving Up
Purchasers like to "move up" within 5 years. What is the Best way to build equity
in a flat appreciation market? Go with a 5/1 ARM. This illustration shows you how
much equity your purchasers would have after 5 years taking the monthly savings
on a 5/1 ARM and applying it to the principal each month.
5/1 ARM versus 30 year Fixed
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$400,000 starting loan amount
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30 year 4.75%
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$365,350 balance after 5 years at 4.75%.
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$34,650 paid down on the mortgage
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5/1 ARM 3.5%
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$358,000 balance after 5 years 3.5%
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$42,000 paid down on the mortgage
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Save $290 per month going with the 5/1
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Add the $290 to your payment each month.
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$338,700 balance after 5 years
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$61,300 paid down on the mortgage!!!
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Best way for your purchasers to build equity!
5/1
No Negative Amortization
No Pre-Payment Penalty
"Click" a button, Change your Rate!
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