Loan (Mortgage) refinance calculations instructions: 3/1 ARM (1st 3 years ONLY) vs. 10-year fixed vs.

30-year fixed

Fill in cells with the large, italicized, blue numbers. Calculations will be provided in the other cells.

Use this to compare these three types of mortgages. If you consider an adjustable rate mortgage, be sure to get and understand all details associated with upcoming rate changes and the
possible need to refinance in the future. The ARM is a high risk mortgage unless it can be paid off before expiration of the introductory/initial interest rate.

BE SURE TO COMPARE THE BOTTOM LINE OF ANY PROPOSED MORTGAGE TO THE BOTTOM LINE OF YOUR CURRENT
MORTGAGE BEFORE MAKING CHANGES TO YOUR FINANCING.

Principal $ 166,000
Months 36
3/1 ARM 10-year Fixed 30-year Fixed

Rate 2.50% 2.75% 3.25% 3.50% 4.50% 4.68%

Points 0.50% 0.00% 1.50% 0.00% 1.50% 0.00%
Closing Costs $ 4,107 $ 3,277 $ 7,427 $ 4,937 $ 7,427 $ 4,937
APR 2.931% 2.946% 3.786% 3.713% 4.675% 4.750%
36-Month Payment $4,790.99 $4,809.21 $4,845.79 $4,864.15 $4,937.99 $4,950.98
Interest $ 6,475.58 $ 7,131.67 $ 8,448.49 $ 9,109.23 $ 11,767.62 $ 12,235.38
Total Paid $ 176,582.24 $ 176,408.33 $ 181,875.15 $ 180,045.89 $ 185,194.28 $ 183,172.04

Lender-Calculated Pmt $ 655.90 $ 677.68 $ 1,622.14 $1,641.51 $841.10 $858.45

Months Calculated 360 360 120 120 360 360
Total Expended $ 240,230.66 $ 247,241.46 $ 202,083.46 $ 201,917.86 $ 310,221.80 $ 313,977.28

Savings (Paying in 36 Months) $ 63,648.42 $ 70,833.13 $ 20,208.31 $ 21,871.97 $ 125,027.52 $ 130,805.24

What-If Calculations

Proposed Actual Payment $ 2,000

# Months to Pay Off 91.22 92.17 94.14 95.17 99.62 100.46

1st Payment 1/21/2022 1/21/2022 1/21/2022 1/21/2022 1/21/2022 1/21/2022

Last Payment 8/21/2029 9/21/2029 11/21/2029 12/21/2029 4/21/2030 5/21/2030

Total Expended $ 186,552.27 $ 187,614.04 $ 195,710.81 $ 195,281.25 $ 206,666.99 $ 205,852.68

Total Interest/Fees Paid $ 20,552.27 $ 21,614.04 $ 29,710.81 $ 29,281.25 $ 40,666.99 $ 39,852.68

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