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Reduce Mortgage Payments
A lower mortgage loan means lower mortgage payments that are an insurance against financial hardship. The reduction in monthly payments should qualify for a
lower interest rate. To simplify, the following example assumes the same mortgage rate and includes the 2% transaction fee:
Home Price |
$1,000,000 |
$1,000,000 |
Down Payment |
$200,000 |
$200,000 |
PayHome (15%-2%) |
-- |
$147,000 |
Mortgage (4%) |
$800,000 |
$653,000 |
Monthly Payments |
$3,819 |
$3,118 |
Monthly Savings |
|
$701 |
Annual Savings |
|
$8,412 |
With PayHome, buyers can avoid
mortgage insurance which can cost hundreds of dollars a month. In addition, they can avert the cost of upgrading later to more suitable homes. Realtor commissions, closing costs, and moving expenses amount typically
to more than 10% of the price of a new home.
By filling the blanks below, applicants can compare the savings and the rates of return on a down
payment with PayHome and without PayHome. First use identical mortgages for the purchase savings and the rates of return. Then use different mortgages and interest rates for the monthly, annual and five-year savings.
(mortgage parameters
to be inserted here)
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