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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.

Home purchase price:
Your down payment
PayHome requested:
Estimated payoff year:
Estimated annual appreciation:

(mortgage parameters to be inserted here)