Teaching Tool 19 - Home Loan Comparison: Loan 1

13-Dec-16
Personal Finance: Another Perspective

Purpose:
The purpose of this spreadsheet is to give an Excel template for determining which
of three different loans would be most attractive to you based on your estimates of
closing costs, interest rates, and how long you will be in the home. In addition, we
have added a prepayment worksheet to help you pay your home off faster. Please
note that your actual monthly payment is going to be more due to the additional costs
of Private Mortgage Insurance and the additional Escrow payments.

Note on Amount Needed

Please note that when you choose to pay points and fees, the amount of points and fees are
paid to the mortage broker and you receive the amount of the loan less the points and fees.
As such, if you choose to include the cost of the points and fees in the loan, you will need
to increase the amount of the loan (and hence you have more to pay back).

Note on Maximum Periods

This spreadsheet was developed with maximum periods of 360 which is sufficient for a
30 year loan with monthly payments (30 * 12 = 360). If you plan to do analysis of
loans with more than 360 payments, i.e., bi-weekly loans, you will need to add additional
rows.

Disclosure:
The purpose of this spreadsheet and this class is to help you get your financial house in
order and to help you on your road to financial self-reliance. If there are mistakes in this
spreadsheet, please bring them to our attention and we will correct them in upcoming
versions. The teacher, and BYU, specifically disclaim any liability, or responsibility for
claims, loss, or risk incurred, directly or indirectly, from using this material.
 Teaching Tool 19 - Home Loan Comparison: Loan 1
Personal Finance: Another Perspective
Directions: Fill in the green cells with your data. Be careful not to modify the blue cells. With prepayment, we
assume payments are for principle and occur at the end of the previous month. The spreadsheet can handle max-
imum periods of 360, for a 30 year monthly mortgage. If you need a loan after points and fees, put the amount in
row 10 and a 1 in row 9. If you need the amount before points and fees, put a 2 in row 9.
Amount Needed: after points and fees = 1, Before Points and Fees=2: 1
Loan Information: Amount Needed (after points & fees): $ 200,000
Loan Amount $ 200,000.00 Total Periods 360 Rates:
Interest Rate (APR) 3.50% Loan Payments: 360 APR
Years (1-30) 30 Prepayment of Principal 3.50%
Payments per year (12) 12 Number of Prepayments: 0 Effective
Monthly Payments $ 898.09 Total of Prepayments: $ - Interest Rate
Prepayment after # years? Savings from Prepayments: $ 0 3.50%
(blank = no early payoff)
Received Before Fees $ 200,000 Amount Received After Fees $ 200,000
Points - Other Fees Total Costs -

Regular Pmts. Extra Payments Pts & Fees BalloonPmt Total Paid less Received Interest Paid
323,312 - - - 323,312 200,000 123,312
Cost of loan without prepayment Total Paid less Received Interest
323,312 323,312 200,000 123,312
Interest Saved by Prepayment: 0
200,000.00
Loan Amortization Schedule
Regular Balloon Prepayment of
M# Owed Payment Payment Principal Interest Principal New Principal
1 $200,000.00 $898.09 $0.00 $314.76 $583.33 $199,685.24
2 $199,685.24 $898.09 $0.00 $315.67 $582.42 $199,369.57
3 $199,369.57 $898.09 $0.00 $316.59 $581.49 $199,052.98
4 $199,052.98 $898.09 $0.00 $317.52 $580.57 $198,735.46
5 $198,735.46 $898.09 $0.00 $318.44 $579.65 $198,417.01
6 $198,417.01 $898.09 $0.00 $319.37 $578.72 $198,097.64
7 $198,097.64 $898.09 $0.00 $320.30 $577.78 $197,777.33
8 $197,777.33 $898.09 $0.00 $321.24 $576.85 $197,456.10
9 $197,456.10 $898.09 $0.00 $322.18 $575.91 $197,133.92
10 $197,133.92 $898.09 $0.00 $323.12 $574.97 $196,810.80
11 $196,810.80 $898.09 $0.00 $324.06 $574.03 $196,486.75
12 $196,486.75 $898.09 $0.00 $325.00 $573.09 $196,161.74
13 $196,161.74 $898.09 $0.00 $325.95 $572.14 $195,835.79
14 $195,835.79 $898.09 $0.00 $326.90 $571.19 $195,508.89
15 $195,508.89 $898.09 $0.00 $327.86 $570.23 $195,181.04
16 $195,181.04 $898.09 $0.00 $328.81 $569.28 $194,852.22
17 $194,852.22 $898.09 $0.00 $329.77 $568.32 $194,522.45
18 $194,522.45 $898.09 $0.00 $330.73 $567.36 $194,191.72
19 $194,191.72 $898.09 $0.00 $331.70 $566.39 $193,860.03
20 $193,860.03 $898.09 $0.00 $332.66 $565.43 $193,527.36
21 $193,527.36 $898.09 $0.00 $333.63 $564.45 $193,193.73
22 $193,193.73 $898.09 $0.00 $334.61 $563.48 $192,859.12

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 Teaching Tool 19 - Home Loan Comparison: Loan 1
Personal Finance: Another Perspective
23 $192,859.12 $898.09 $0.00 $335.58 $562.51 $192,523.54
24 $192,523.54 $898.09 $0.00 $336.56 $561.53 $192,186.97
25 $192,186.97 $898.09 $0.00 $337.54 $560.55 $191,849.43
26 $191,849.43 $898.09 $0.00 $338.53 $559.56 $191,510.90
27 $191,510.90 $898.09 $0.00 $339.52 $558.57 $191,171.38
28 $191,171.38 $898.09 $0.00 $340.51 $557.58 $190,830.88
29 $190,830.88 $898.09 $0.00 $341.50 $556.59 $190,489.38
30 $190,489.38 $898.09 $0.00 $342.50 $555.59 $190,146.88
31 $190,146.88 $898.09 $0.00 $343.49 $554.60 $189,803.39
32 $189,803.39 $898.09 $0.00 $344.50 $553.59 $189,458.89
33 $189,458.89 $898.09 $0.00 $345.50 $552.59 $189,113.39
34 $189,113.39 $898.09 $0.00 $346.51 $551.58 $188,766.88
35 $188,766.88 $898.09 $0.00 $347.52 $550.57 $188,419.36
36 $188,419.36 $898.09 $0.00 $348.53 $549.56 $188,070.83
37 $188,070.83 $898.09 $0.00 $349.55 $548.54 $187,721.28
38 $187,721.28 $898.09 $0.00 $350.57 $547.52 $187,370.71
39 $187,370.71 $898.09 $0.00 $351.59 $546.50 $187,019.12
40 $187,019.12 $898.09 $0.00 $352.62 $545.47 $186,666.50
41 $186,666.50 $898.09 $0.00 $353.65 $544.44 $186,312.86
42 $186,312.86 $898.09 $0.00 $354.68 $543.41 $185,958.18
43 $185,958.18 $898.09 $0.00 $355.71 $542.38 $185,602.47
44 $185,602.47 $898.09 $0.00 $356.75 $541.34 $185,245.72
45 $185,245.72 $898.09 $0.00 $357.79 $540.30 $184,887.93
46 $184,887.93 $898.09 $0.00 $358.83 $539.26 $184,529.10
47 $184,529.10 $898.09 $0.00 $359.88 $538.21 $184,169.22
48 $184,169.22 $898.09 $0.00 $360.93 $537.16 $183,808.29
49 $183,808.29 $898.09 $0.00 $361.98 $536.11 $183,446.31
50 $183,446.31 $898.09 $0.00 $363.04 $535.05 $183,083.27
51 $183,083.27 $898.09 $0.00 $364.10 $533.99 $182,719.18
52 $182,719.18 $898.09 $0.00 $365.16 $532.93 $182,354.02
53 $182,354.02 $898.09 $0.00 $366.22 $531.87 $181,987.79
54 $181,987.79 $898.09 $0.00 $367.29 $530.80 $181,620.50
55 $181,620.50 $898.09 $0.00 $368.36 $529.73 $181,252.14
56 $181,252.14 $898.09 $0.00 $369.44 $528.65 $180,882.70
57 $180,882.70 $898.09 $0.00 $370.51 $527.57 $180,512.19
58 $180,512.19 $898.09 $0.00 $371.60 $526.49 $180,140.59
59 $180,140.59 $898.09 $0.00 $372.68 $525.41 $179,767.91
60 $179,767.91 $898.09 $0.00 $373.77 $524.32 $179,394.15
61 $179,394.15 $898.09 $0.00 $374.86 $523.23 $179,019.29
62 $179,019.29 $898.09 $0.00 $375.95 $522.14 $178,643.34
63 $178,643.34 $898.09 $0.00 $377.05 $521.04 $178,266.29
64 $178,266.29 $898.09 $0.00 $378.15 $519.94 $177,888.15
65 $177,888.15 $898.09 $0.00 $379.25 $518.84 $177,508.90
66 $177,508.90 $898.09 $0.00 $380.36 $517.73 $177,128.54
67 $177,128.54 $898.09 $0.00 $381.46 $516.62 $176,747.08
68 $176,747.08 $898.09 $0.00 $382.58 $515.51 $176,364.50
69 $176,364.50 $898.09 $0.00 $383.69 $514.40 $175,980.81
70 $175,980.81 $898.09 $0.00 $384.81 $513.28 $175,596.00

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 Teaching Tool 19 - Home Loan Comparison: Loan 1
Personal Finance: Another Perspective
71 $175,596.00 $898.09 $0.00 $385.93 $512.15 $175,210.06
72 $175,210.06 $898.09 $0.00 $387.06 $511.03 $174,823.00
73 $174,823.00 $898.09 $0.00 $388.19 $509.90 $174,434.81
74 $174,434.81 $898.09 $0.00 $389.32 $508.77 $174,045.49
75 $174,045.49 $898.09 $0.00 $390.46 $507.63 $173,655.04
76 $173,655.04 $898.09 $0.00 $391.60 $506.49 $173,263.44
77 $173,263.44 $898.09 $0.00 $392.74 $505.35 $172,870.70
78 $172,870.70 $898.09 $0.00 $393.88 $504.21 $172,476.82
79 $172,476.82 $898.09 $0.00 $395.03 $503.06 $172,081.79
80 $172,081.79 $898.09 $0.00 $396.18 $501.91 $171,685.60
81 $171,685.60 $898.09 $0.00 $397.34 $500.75 $171,288.26
82 $171,288.26 $898.09 $0.00 $398.50 $499.59 $170,889.76
83 $170,889.76 $898.09 $0.00 $399.66 $498.43 $170,490.10
84 $170,490.10 $898.09 $0.00 $400.83 $497.26 $170,089.28
85 $170,089.28 $898.09 $0.00 $402.00 $496.09 $169,687.28
86 $169,687.28 $898.09 $0.00 $403.17 $494.92 $169,284.11
87 $169,284.11 $898.09 $0.00 $404.34 $493.75 $168,879.77
88 $168,879.77 $898.09 $0.00 $405.52 $492.57 $168,474.25
89 $168,474.25 $898.09 $0.00 $406.71 $491.38 $168,067.54
90 $168,067.54 $898.09 $0.00 $407.89 $490.20 $167,659.65
91 $167,659.65 $898.09 $0.00 $409.08 $489.01 $167,250.57
92 $167,250.57 $898.09 $0.00 $410.28 $487.81 $166,840.29
93 $166,840.29 $898.09 $0.00 $411.47 $486.62 $166,428.82
94 $166,428.82 $898.09 $0.00 $412.67 $485.42 $166,016.15
95 $166,016.15 $898.09 $0.00 $413.88 $484.21 $165,602.27
96 $165,602.27 $898.09 $0.00 $415.08 $483.01 $165,187.19
97 $165,187.19 $898.09 $0.00 $416.29 $481.80 $164,770.89
98 $164,770.89 $898.09 $0.00 $417.51 $480.58 $164,353.39
99 $164,353.39 $898.09 $0.00 $418.73 $479.36 $163,934.66
100 $163,934.66 $898.09 $0.00 $419.95 $478.14 $163,514.71
101 $163,514.71 $898.09 $0.00 $421.17 $476.92 $163,093.54
102 $163,093.54 $898.09 $0.00 $422.40 $475.69 $162,671.14
103 $162,671.14 $898.09 $0.00 $423.63 $474.46 $162,247.51
104 $162,247.51 $898.09 $0.00 $424.87 $473.22 $161,822.64
105 $161,822.64 $898.09 $0.00 $426.11 $471.98 $161,396.54
106 $161,396.54 $898.09 $0.00 $427.35 $470.74 $160,969.19
107 $160,969.19 $898.09 $0.00 $428.60 $469.49 $160,540.59
108 $160,540.59 $898.09 $0.00 $429.85 $468.24 $160,110.75
109 $160,110.75 $898.09 $0.00 $431.10 $466.99 $159,679.65
110 $159,679.65 $898.09 $0.00 $432.36 $465.73 $159,247.29
111 $159,247.29 $898.09 $0.00 $433.62 $464.47 $158,813.67
112 $158,813.67 $898.09 $0.00 $434.88 $463.21 $158,378.79
113 $158,378.79 $898.09 $0.00 $436.15 $461.94 $157,942.64
114 $157,942.64 $898.09 $0.00 $437.42 $460.67 $157,505.21
115 $157,505.21 $898.09 $0.00 $438.70 $459.39 $157,066.51
116 $157,066.51 $898.09 $0.00 $439.98 $458.11 $156,626.54
117 $156,626.54 $898.09 $0.00 $441.26 $456.83 $156,185.27
118 $156,185.27 $898.09 $0.00 $442.55 $455.54 $155,742.72

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 Teaching Tool 19 - Home Loan Comparison: Loan 1
Personal Finance: Another Perspective
119 $155,742.72 $898.09 $0.00 $443.84 $454.25 $155,298.88
120 $155,298.88 $898.09 $0.00 $445.13 $452.96 $154,853.75
121 $154,853.75 $898.09 $0.00 $446.43 $451.66 $154,407.32
122 $154,407.32 $898.09 $0.00 $447.73 $450.35 $153,959.58
123 $153,959.58 $898.09 $0.00 $449.04 $449.05 $153,510.54
124 $153,510.54 $898.09 $0.00 $450.35 $447.74 $153,060.19
125 $153,060.19 $898.09 $0.00 $451.66 $446.43 $152,608.53
126 $152,608.53 $898.09 $0.00 $452.98 $445.11 $152,155.55
127 $152,155.55 $898.09 $0.00 $454.30 $443.79 $151,701.25
128 $151,701.25 $898.09 $0.00 $455.63 $442.46 $151,245.62
129 $151,245.62 $898.09 $0.00 $456.96 $441.13 $150,788.66
130 $150,788.66 $898.09 $0.00 $458.29 $439.80 $150,330.37
131 $150,330.37 $898.09 $0.00 $459.63 $438.46 $149,870.75
132 $149,870.75 $898.09 $0.00 $460.97 $437.12 $149,409.78
133 $149,409.78 $898.09 $0.00 $462.31 $435.78 $148,947.47
134 $148,947.47 $898.09 $0.00 $463.66 $434.43 $148,483.81
135 $148,483.81 $898.09 $0.00 $465.01 $433.08 $148,018.80
136 $148,018.80 $898.09 $0.00 $466.37 $431.72 $147,552.43
137 $147,552.43 $898.09 $0.00 $467.73 $430.36 $147,084.70
138 $147,084.70 $898.09 $0.00 $469.09 $429.00 $146,615.61
139 $146,615.61 $898.09 $0.00 $470.46 $427.63 $146,145.15
140 $146,145.15 $898.09 $0.00 $471.83 $426.26 $145,673.32
141 $145,673.32 $898.09 $0.00 $473.21 $424.88 $145,200.11
142 $145,200.11 $898.09 $0.00 $474.59 $423.50 $144,725.52
143 $144,725.52 $898.09 $0.00 $475.97 $422.12 $144,249.55
144 $144,249.55 $898.09 $0.00 $477.36 $420.73 $143,772.18
145 $143,772.18 $898.09 $0.00 $478.75 $419.34 $143,293.43
146 $143,293.43 $898.09 $0.00 $480.15 $417.94 $142,813.28
147 $142,813.28 $898.09 $0.00 $481.55 $416.54 $142,331.73
148 $142,331.73 $898.09 $0.00 $482.96 $415.13 $141,848.77
149 $141,848.77 $898.09 $0.00 $484.36 $413.73 $141,364.41
150 $141,364.41 $898.09 $0.00 $485.78 $412.31 $140,878.63
151 $140,878.63 $898.09 $0.00 $487.19 $410.90 $140,391.44
152 $140,391.44 $898.09 $0.00 $488.61 $409.48 $139,902.83
153 $139,902.83 $898.09 $0.00 $490.04 $408.05 $139,412.79
154 $139,412.79 $898.09 $0.00 $491.47 $406.62 $138,921.32
155 $138,921.32 $898.09 $0.00 $492.90 $405.19 $138,428.42
156 $138,428.42 $898.09 $0.00 $494.34 $403.75 $137,934.08
157 $137,934.08 $898.09 $0.00 $495.78 $402.31 $137,438.29
158 $137,438.29 $898.09 $0.00 $497.23 $400.86 $136,941.07
159 $136,941.07 $898.09 $0.00 $498.68 $399.41 $136,442.39
160 $136,442.39 $898.09 $0.00 $500.13 $397.96 $135,942.26
161 $135,942.26 $898.09 $0.00 $501.59 $396.50 $135,440.67
162 $135,440.67 $898.09 $0.00 $503.05 $395.04 $134,937.61
163 $134,937.61 $898.09 $0.00 $504.52 $393.57 $134,433.09
164 $134,433.09 $898.09 $0.00 $505.99 $392.10 $133,927.10
165 $133,927.10 $898.09 $0.00 $507.47 $390.62 $133,419.63
166 $133,419.63 $898.09 $0.00 $508.95 $389.14 $132,910.68

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 Teaching Tool 19 - Home Loan Comparison: Loan 1
Personal Finance: Another Perspective
167 $132,910.68 $898.09 $0.00 $510.43 $387.66 $132,400.25
168 $132,400.25 $898.09 $0.00 $511.92 $386.17 $131,888.32
169 $131,888.32 $898.09 $0.00 $513.42 $384.67 $131,374.91
170 $131,374.91 $898.09 $0.00 $514.91 $383.18 $130,860.00
171 $130,860.00 $898.09 $0.00 $516.41 $381.67 $130,343.58
172 $130,343.58 $898.09 $0.00 $517.92 $380.17 $129,825.66
173 $129,825.66 $898.09 $0.00 $519.43 $378.66 $129,306.23
174 $129,306.23 $898.09 $0.00 $520.95 $377.14 $128,785.28
175 $128,785.28 $898.09 $0.00 $522.47 $375.62 $128,262.82
176 $128,262.82 $898.09 $0.00 $523.99 $374.10 $127,738.83
177 $127,738.83 $898.09 $0.00 $525.52 $372.57 $127,213.31
178 $127,213.31 $898.09 $0.00 $527.05 $371.04 $126,686.26
179 $126,686.26 $898.09 $0.00 $528.59 $369.50 $126,157.67
180 $126,157.67 $898.09 $0.00 $530.13 $367.96 $125,627.54
181 $125,627.54 $898.09 $0.00 $531.68 $366.41 $125,095.87
182 $125,095.87 $898.09 $0.00 $533.23 $364.86 $124,562.64
183 $124,562.64 $898.09 $0.00 $534.78 $363.31 $124,027.86
184 $124,027.86 $898.09 $0.00 $536.34 $361.75 $123,491.52
185 $123,491.52 $898.09 $0.00 $537.91 $360.18 $122,953.61
186 $122,953.61 $898.09 $0.00 $539.47 $358.61 $122,414.14
187 $122,414.14 $898.09 $0.00 $541.05 $357.04 $121,873.09
188 $121,873.09 $898.09 $0.00 $542.63 $355.46 $121,330.46
189 $121,330.46 $898.09 $0.00 $544.21 $353.88 $120,786.25
190 $120,786.25 $898.09 $0.00 $545.80 $352.29 $120,240.46
191 $120,240.46 $898.09 $0.00 $547.39 $350.70 $119,693.07
192 $119,693.07 $898.09 $0.00 $548.98 $349.10 $119,144.09
193 $119,144.09 $898.09 $0.00 $550.59 $347.50 $118,593.50
194 $118,593.50 $898.09 $0.00 $552.19 $345.90 $118,041.31
195 $118,041.31 $898.09 $0.00 $553.80 $344.29 $117,487.51
196 $117,487.51 $898.09 $0.00 $555.42 $342.67 $116,932.09
197 $116,932.09 $898.09 $0.00 $557.04 $341.05 $116,375.05
198 $116,375.05 $898.09 $0.00 $558.66 $339.43 $115,816.39
199 $115,816.39 $898.09 $0.00 $560.29 $337.80 $115,256.10
200 $115,256.10 $898.09 $0.00 $561.93 $336.16 $114,694.17
201 $114,694.17 $898.09 $0.00 $563.56 $334.52 $114,130.61
202 $114,130.61 $898.09 $0.00 $565.21 $332.88 $113,565.40
203 $113,565.40 $898.09 $0.00 $566.86 $331.23 $112,998.54
204 $112,998.54 $898.09 $0.00 $568.51 $329.58 $112,430.03
205 $112,430.03 $898.09 $0.00 $570.17 $327.92 $111,859.86
206 $111,859.86 $898.09 $0.00 $571.83 $326.26 $111,288.03
207 $111,288.03 $898.09 $0.00 $573.50 $324.59 $110,714.53
208 $110,714.53 $898.09 $0.00 $575.17 $322.92 $110,139.36
209 $110,139.36 $898.09 $0.00 $576.85 $321.24 $109,562.51
210 $109,562.51 $898.09 $0.00 $578.53 $319.56 $108,983.98
211 $108,983.98 $898.09 $0.00 $580.22 $317.87 $108,403.76
212 $108,403.76 $898.09 $0.00 $581.91 $316.18 $107,821.85
213 $107,821.85 $898.09 $0.00 $583.61 $314.48 $107,238.24
214 $107,238.24 $898.09 $0.00 $585.31 $312.78 $106,652.93

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 Teaching Tool 19 - Home Loan Comparison: Loan 1
Personal Finance: Another Perspective
215 $106,652.93 $898.09 $0.00 $587.02 $311.07 $106,065.91
216 $106,065.91 $898.09 $0.00 $588.73 $309.36 $105,477.18
217 $105,477.18 $898.09 $0.00 $590.45 $307.64 $104,886.73
218 $104,886.73 $898.09 $0.00 $592.17 $305.92 $104,294.56
219 $104,294.56 $898.09 $0.00 $593.90 $304.19 $103,700.66
220 $103,700.66 $898.09 $0.00 $595.63 $302.46 $103,105.04
221 $103,105.04 $898.09 $0.00 $597.37 $300.72 $102,507.67
222 $102,507.67 $898.09 $0.00 $599.11 $298.98 $101,908.56
223 $101,908.56 $898.09 $0.00 $600.86 $297.23 $101,307.70
224 $101,307.70 $898.09 $0.00 $602.61 $295.48 $100,705.10
225 $100,705.10 $898.09 $0.00 $604.37 $293.72 $100,100.73
226 $100,100.73 $898.09 $0.00 $606.13 $291.96 $99,494.60
227 $99,494.60 $898.09 $0.00 $607.90 $290.19 $98,886.70
228 $98,886.70 $898.09 $0.00 $609.67 $288.42 $98,277.03
229 $98,277.03 $898.09 $0.00 $611.45 $286.64 $97,665.59
230 $97,665.59 $898.09 $0.00 $613.23 $284.86 $97,052.35
231 $97,052.35 $898.09 $0.00 $615.02 $283.07 $96,437.33
232 $96,437.33 $898.09 $0.00 $616.81 $281.28 $95,820.52
233 $95,820.52 $898.09 $0.00 $618.61 $279.48 $95,201.91
234 $95,201.91 $898.09 $0.00 $620.42 $277.67 $94,581.49
235 $94,581.49 $898.09 $0.00 $622.23 $275.86 $93,959.26
236 $93,959.26 $898.09 $0.00 $624.04 $274.05 $93,335.22
237 $93,335.22 $898.09 $0.00 $625.86 $272.23 $92,709.36
238 $92,709.36 $898.09 $0.00 $627.69 $270.40 $92,081.67
239 $92,081.67 $898.09 $0.00 $629.52 $268.57 $91,452.16
240 $91,452.16 $898.09 $0.00 $631.35 $266.74 $90,820.80
241 $90,820.80 $898.09 $0.00 $633.20 $264.89 $90,187.61
242 $90,187.61 $898.09 $0.00 $635.04 $263.05 $89,552.56
243 $89,552.56 $898.09 $0.00 $636.89 $261.19 $88,915.67
244 $88,915.67 $898.09 $0.00 $638.75 $259.34 $88,276.92
245 $88,276.92 $898.09 $0.00 $640.62 $257.47 $87,636.30
246 $87,636.30 $898.09 $0.00 $642.48 $255.61 $86,993.82
247 $86,993.82 $898.09 $0.00 $644.36 $253.73 $86,349.46
248 $86,349.46 $898.09 $0.00 $646.24 $251.85 $85,703.22
249 $85,703.22 $898.09 $0.00 $648.12 $249.97 $85,055.10
250 $85,055.10 $898.09 $0.00 $650.01 $248.08 $84,405.09
251 $84,405.09 $898.09 $0.00 $651.91 $246.18 $83,753.18
252 $83,753.18 $898.09 $0.00 $653.81 $244.28 $83,099.37
253 $83,099.37 $898.09 $0.00 $655.72 $242.37 $82,443.66
254 $82,443.66 $898.09 $0.00 $657.63 $240.46 $81,786.03
255 $81,786.03 $898.09 $0.00 $659.55 $238.54 $81,126.48
256 $81,126.48 $898.09 $0.00 $661.47 $236.62 $80,465.01
257 $80,465.01 $898.09 $0.00 $663.40 $234.69 $79,801.61
258 $79,801.61 $898.09 $0.00 $665.33 $232.75 $79,136.28
259 $79,136.28 $898.09 $0.00 $667.28 $230.81 $78,469.00
260 $78,469.00 $898.09 $0.00 $669.22 $228.87 $77,799.78
261 $77,799.78 $898.09 $0.00 $671.17 $226.92 $77,128.61
262 $77,128.61 $898.09 $0.00 $673.13 $224.96 $76,455.48

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 Teaching Tool 19 - Home Loan Comparison: Loan 1
Personal Finance: Another Perspective
263 $76,455.48 $898.09 $0.00 $675.09 $223.00 $75,780.38
264 $75,780.38 $898.09 $0.00 $677.06 $221.03 $75,103.32
265 $75,103.32 $898.09 $0.00 $679.04 $219.05 $74,424.28
266 $74,424.28 $898.09 $0.00 $681.02 $217.07 $73,743.26
267 $73,743.26 $898.09 $0.00 $683.00 $215.08 $73,060.26
268 $73,060.26 $898.09 $0.00 $685.00 $213.09 $72,375.26
269 $72,375.26 $898.09 $0.00 $686.99 $211.09 $71,688.27
270 $71,688.27 $898.09 $0.00 $689.00 $209.09 $70,999.27
271 $70,999.27 $898.09 $0.00 $691.01 $207.08 $70,308.26
272 $70,308.26 $898.09 $0.00 $693.02 $205.07 $69,615.24
273 $69,615.24 $898.09 $0.00 $695.04 $203.04 $68,920.19
274 $68,920.19 $898.09 $0.00 $697.07 $201.02 $68,223.12
275 $68,223.12 $898.09 $0.00 $699.11 $198.98 $67,524.01
276 $67,524.01 $898.09 $0.00 $701.14 $196.95 $66,822.87
277 $66,822.87 $898.09 $0.00 $703.19 $194.90 $66,119.68
278 $66,119.68 $898.09 $0.00 $705.24 $192.85 $65,414.44
279 $65,414.44 $898.09 $0.00 $707.30 $190.79 $64,707.14
280 $64,707.14 $898.09 $0.00 $709.36 $188.73 $63,997.78
281 $63,997.78 $898.09 $0.00 $711.43 $186.66 $63,286.35
282 $63,286.35 $898.09 $0.00 $713.50 $184.59 $62,572.85
283 $62,572.85 $898.09 $0.00 $715.59 $182.50 $61,857.26
284 $61,857.26 $898.09 $0.00 $717.67 $180.42 $61,139.59
285 $61,139.59 $898.09 $0.00 $719.77 $178.32 $60,419.83
286 $60,419.83 $898.09 $0.00 $721.86 $176.22 $59,697.96
287 $59,697.96 $898.09 $0.00 $723.97 $174.12 $58,973.99
288 $58,973.99 $898.09 $0.00 $726.08 $172.01 $58,247.91
289 $58,247.91 $898.09 $0.00 $728.20 $169.89 $57,519.71
290 $57,519.71 $898.09 $0.00 $730.32 $167.77 $56,789.38
291 $56,789.38 $898.09 $0.00 $732.45 $165.64 $56,056.93
292 $56,056.93 $898.09 $0.00 $734.59 $163.50 $55,322.34
293 $55,322.34 $898.09 $0.00 $736.73 $161.36 $54,585.61
294 $54,585.61 $898.09 $0.00 $738.88 $159.21 $53,846.73
295 $53,846.73 $898.09 $0.00 $741.04 $157.05 $53,105.69
296 $53,105.69 $898.09 $0.00 $743.20 $154.89 $52,362.49
297 $52,362.49 $898.09 $0.00 $745.37 $152.72 $51,617.13
298 $51,617.13 $898.09 $0.00 $747.54 $150.55 $50,869.59
299 $50,869.59 $898.09 $0.00 $749.72 $148.37 $50,119.87
300 $50,119.87 $898.09 $0.00 $751.91 $146.18 $49,367.96
301 $49,367.96 $898.09 $0.00 $754.10 $143.99 $48,613.86
302 $48,613.86 $898.09 $0.00 $756.30 $141.79 $47,857.56
303 $47,857.56 $898.09 $0.00 $758.50 $139.58 $47,099.06
304 $47,099.06 $898.09 $0.00 $760.72 $137.37 $46,338.34
305 $46,338.34 $898.09 $0.00 $762.94 $135.15 $45,575.41
306 $45,575.41 $898.09 $0.00 $765.16 $132.93 $44,810.24
307 $44,810.24 $898.09 $0.00 $767.39 $130.70 $44,042.85
308 $44,042.85 $898.09 $0.00 $769.63 $128.46 $43,273.22
309 $43,273.22 $898.09 $0.00 $771.88 $126.21 $42,501.35
310 $42,501.35 $898.09 $0.00 $774.13 $123.96 $41,727.22

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 Teaching Tool 19 - Home Loan Comparison: Loan 1
Personal Finance: Another Perspective
311 $41,727.22 $898.09 $0.00 $776.38 $121.70 $40,950.83
312 $40,950.83 $898.09 $0.00 $778.65 $119.44 $40,172.18
313 $40,172.18 $898.09 $0.00 $780.92 $117.17 $39,391.26
314 $39,391.26 $898.09 $0.00 $783.20 $114.89 $38,608.06
315 $38,608.06 $898.09 $0.00 $785.48 $112.61 $37,822.58
316 $37,822.58 $898.09 $0.00 $787.77 $110.32 $37,034.81
317 $37,034.81 $898.09 $0.00 $790.07 $108.02 $36,244.74
318 $36,244.74 $898.09 $0.00 $792.38 $105.71 $35,452.36
319 $35,452.36 $898.09 $0.00 $794.69 $103.40 $34,657.68
320 $34,657.68 $898.09 $0.00 $797.00 $101.08 $33,860.67
321 $33,860.67 $898.09 $0.00 $799.33 $98.76 $33,061.34
322 $33,061.34 $898.09 $0.00 $801.66 $96.43 $32,259.68
323 $32,259.68 $898.09 $0.00 $804.00 $94.09 $31,455.68
324 $31,455.68 $898.09 $0.00 $806.34 $91.75 $30,649.34
325 $30,649.34 $898.09 $0.00 $808.70 $89.39 $29,840.64
326 $29,840.64 $898.09 $0.00 $811.05 $87.04 $29,029.59
327 $29,029.59 $898.09 $0.00 $813.42 $84.67 $28,216.17
328 $28,216.17 $898.09 $0.00 $815.79 $82.30 $27,400.38
329 $27,400.38 $898.09 $0.00 $818.17 $79.92 $26,582.21
330 $26,582.21 $898.09 $0.00 $820.56 $77.53 $25,761.65
331 $25,761.65 $898.09 $0.00 $822.95 $75.14 $24,938.70
332 $24,938.70 $898.09 $0.00 $825.35 $72.74 $24,113.35
333 $24,113.35 $898.09 $0.00 $827.76 $70.33 $23,285.59
334 $23,285.59 $898.09 $0.00 $830.17 $67.92 $22,455.41
335 $22,455.41 $898.09 $0.00 $832.59 $65.49 $21,622.82
336 $21,622.82 $898.09 $0.00 $835.02 $63.07 $20,787.80
337 $20,787.80 $898.09 $0.00 $837.46 $60.63 $19,950.34
338 $19,950.34 $898.09 $0.00 $839.90 $58.19 $19,110.44
339 $19,110.44 $898.09 $0.00 $842.35 $55.74 $18,268.09
340 $18,268.09 $898.09 $0.00 $844.81 $53.28 $17,423.28
341 $17,423.28 $898.09 $0.00 $847.27 $50.82 $16,576.01
342 $16,576.01 $898.09 $0.00 $849.74 $48.35 $15,726.26
343 $15,726.26 $898.09 $0.00 $852.22 $45.87 $14,874.04
344 $14,874.04 $898.09 $0.00 $854.71 $43.38 $14,019.34
345 $14,019.34 $898.09 $0.00 $857.20 $40.89 $13,162.14
346 $13,162.14 $898.09 $0.00 $859.70 $38.39 $12,302.44
347 $12,302.44 $898.09 $0.00 $862.21 $35.88 $11,440.23
348 $11,440.23 $898.09 $0.00 $864.72 $33.37 $10,575.51
349 $10,575.51 $898.09 $0.00 $867.24 $30.85 $9,708.26
350 $9,708.26 $898.09 $0.00 $869.77 $28.32 $8,838.49
351 $8,838.49 $898.09 $0.00 $872.31 $25.78 $7,966.18
352 $7,966.18 $898.09 $0.00 $874.85 $23.23 $7,091.33
353 $7,091.33 $898.09 $0.00 $877.41 $20.68 $6,213.92
354 $6,213.92 $898.09 $0.00 $879.97 $18.12 $5,333.95
355 $5,333.95 $898.09 $0.00 $882.53 $15.56 $4,451.42
356 $4,451.42 $898.09 $0.00 $885.11 $12.98 $3,566.32
357 $3,566.32 $898.09 $0.00 $887.69 $10.40 $2,678.63
358 $2,678.63 $898.09 $0.00 $890.28 $7.81 $1,788.35

Page 9 of 35
 Teaching Tool 19 - Home Loan Comparison: Loan 1
Personal Finance: Another Perspective
359 $1,788.35 $898.09 $0.00 $892.87 $5.22 $895.48
360 $895.48 $898.09 $0.00 $895.48 $2.61 $0.00
$323,312.18 $200,000.00 $123,312.18 $0.00 $0.00

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 Home Loan Comparison with Prepayment of Principle
Personal Finance: Another Perspective

Directions: Fill in the green cells with your data. Be careful not to modify the blue cells. With prepayment, we assume payments
are for principle only and occur at the end of the previous month. Special thanks to Cameron Scott who designed this spreadsheet.
Please note that the spreadsheet can handle maximum periods of 360, for a 30 year monthly mortgage.
Loan Information Years
Loan Amount $ 200,000 Total Periods: 360 30.00 Rates:
Interest Rate 4.00% Total # of Loan Payments: 120 10.00 APR
Years (1-30) 30 Number of Years Paid off Early: 20.00 4.00%
Payments per year (12) 12 Prepayment of Principal
Required Monthly Payment $ 954.83 Number of Payments: 120
Additional Payments $ 1,073.17 Number of Prepayments: -
Desired Monthly Payment $ 2,028.00 Total Amount of Prepayments: 128,780
Prepayment after # years? Savings from Prepayments: 100,379
(blank = no early payoff)
Points - Other Fees Total Received -
Paying Off Your Loan Early:
Regular Pmts. Extra Payments BalloonPmt Total Paid less Received Interest Paid
114,579.67 128,780 - 114,580 200,000 43,360
Cost of loan without prepayment Total Paid less Received Interest Paid
343,739.01 343,739 200,000 143,739
Interest Saved by Prepayment (less fees): $100,379

Loan Amortization Schedule

Regular Balloon Amount Paid over Add'l Prepayment
Month Owed Payment Payment Principal Interest Monthly of Principal New Principal
1 $200,000.00 $954.83 $0.00 $288.16 $666.67 $1,073.17 $198,638.67
2 $198,638.67 $954.83 $0.00 $292.70 $662.13 $1,073.17 $197,272.80
3 $197,272.80 $954.83 $0.00 $297.25 $657.58 $1,073.17 $195,902.38
4 $195,902.38 $954.83 $0.00 $301.82 $653.01 $1,073.17 $194,527.39
5 $194,527.39 $954.83 $0.00 $306.41 $648.42 $1,073.17 $193,147.81
6 $193,147.81 $954.83 $0.00 $311.00 $643.83 $1,073.17 $191,763.64
7 $191,763.64 $954.83 $0.00 $315.62 $639.21 $1,073.17 $190,374.86
8 $190,374.86 $954.83 $0.00 $320.25 $634.58 $1,073.17 $188,981.44
9 $188,981.44 $954.83 $0.00 $324.89 $629.94 $1,073.17 $187,583.38
10 $187,583.38 $954.83 $0.00 $329.55 $625.28 $1,073.17 $186,180.66
11 $186,180.66 $954.83 $0.00 $334.23 $620.60 $1,073.17 $184,773.27
12 $184,773.27 $954.83 $0.00 $338.92 $615.91 $1,073.17 $183,361.18
13 $183,361.18 $954.83 $0.00 $343.63 $611.20 $1,073.17 $181,944.38
14 $181,944.38 $954.83 $0.00 $348.35 $606.48 $1,073.17 $180,522.87
15 $180,522.87 $954.83 $0.00 $353.09 $601.74 $1,073.17 $179,096.61
16 $179,096.61 $954.83 $0.00 $357.84 $596.99 $1,073.17 $177,665.60
17 $177,665.60 $954.83 $0.00 $362.61 $592.22 $1,073.17 $176,229.82
18 $176,229.82 $954.83 $0.00 $367.40 $587.43 $1,073.17 $174,789.26
19 $174,789.26 $954.83 $0.00 $372.20 $582.63 $1,073.17 $173,343.89
20 $173,343.89 $954.83 $0.00 $377.02 $577.81 $1,073.17 $171,893.71
21 $171,893.71 $954.83 $0.00 $381.85 $572.98 $1,073.17 $170,438.69
22 $170,438.69 $954.83 $0.00 $386.70 $568.13 $1,073.17 $168,978.82
23 $168,978.82 $954.83 $0.00 $391.57 $563.26 $1,073.17 $167,514.08
24 $167,514.08 $954.83 $0.00 $396.45 $558.38 $1,073.17 $166,044.46
25 $166,044.46 $954.83 $0.00 $401.35 $553.48 $1,073.17 $164,569.95
26 $164,569.95 $954.83 $0.00 $406.26 $548.57 $1,073.17 $163,090.52
27 $163,090.52 $954.83 $0.00 $411.20 $543.64 $1,073.17 $161,606.15
28 $161,606.15 $954.83 $0.00 $416.14 $538.69 $1,073.17 $160,116.84
29 $160,116.84 $954.83 $0.00 $421.11 $533.72 $1,073.17 $158,622.57
30 $158,622.57 $954.83 $0.00 $426.09 $528.74 $1,073.17 $157,123.31
31 $157,123.31 $954.83 $0.00 $431.09 $523.74 $1,073.17 $155,619.06
32 $155,619.06 $954.83 $0.00 $436.10 $518.73 $1,073.17 $154,109.79
33 $154,109.79 $954.83 $0.00 $441.13 $513.70 $1,073.17 $152,595.49
34 $152,595.49 $954.83 $0.00 $446.18 $508.65 $1,073.17 $151,076.14
35 $151,076.14 $954.83 $0.00 $451.24 $503.59 $1,073.17 $149,551.73
36 $149,551.73 $954.83 $0.00 $456.32 $498.51 $1,073.17 $148,022.24
37 $148,022.24 $954.83 $0.00 $461.42 $493.41 $1,073.17 $146,487.65
38 $146,487.65 $954.83 $0.00 $466.54 $488.29 $1,073.17 $144,947.95
39 $144,947.95 $954.83 $0.00 $471.67 $483.16 $1,073.17 $143,403.11
40 $143,403.11 $954.83 $0.00 $476.82 $478.01 $1,073.17 $141,853.12
41 $141,853.12 $954.83 $0.00 $481.99 $472.84 $1,073.17 $140,297.97
42 $140,297.97 $954.83 $0.00 $487.17 $467.66 $1,073.17 $138,737.63
43 $138,737.63 $954.83 $0.00 $492.37 $462.46 $1,073.17 $137,172.09
44 $137,172.09 $954.83 $0.00 $497.59 $457.24 $1,073.17 $135,601.33
45 $135,601.33 $954.83 $0.00 $502.83 $452.00 $1,073.17 $134,025.34
46 $134,025.34 $954.83 $0.00 $508.08 $446.75 $1,073.17 $132,444.09
47 $132,444.09 $954.83 $0.00 $513.35 $441.48 $1,073.17 $130,857.57
48 $130,857.57 $954.83 $0.00 $518.64 $436.19 $1,073.17 $129,265.77
49 $129,265.77 $954.83 $0.00 $523.94 $430.89 $1,073.17 $127,668.65
50 $127,668.65 $954.83 $0.00 $529.27 $425.56 $1,073.17 $126,066.22
51 $126,066.22 $954.83 $0.00 $534.61 $420.22 $1,073.17 $124,458.44
52 $124,458.44 $954.83 $0.00 $539.97 $414.86 $1,073.17 $122,845.30
53 $122,845.30 $954.83 $0.00 $545.35 $409.48 $1,073.17 $121,226.79
54 $121,226.79 $954.83 $0.00 $550.74 $404.09 $1,073.17 $119,602.88
55 $119,602.88 $954.83 $0.00 $556.15 $398.68 $1,073.17 $117,973.56
56 $117,973.56 $954.83 $0.00 $561.59 $393.25 $1,073.17 $116,338.81
57 $116,338.81 $954.83 $0.00 $567.03 $387.80 $1,073.17 $114,698.60
58 $114,698.60 $954.83 $0.00 $572.50 $382.33 $1,073.17 $113,052.94
59 $113,052.94 $954.83 $0.00 $577.99 $376.84 $1,073.17 $111,401.78
60 $111,401.78 $954.83 $0.00 $583.49 $371.34 $1,073.17 $109,745.12
61 $109,745.12 $954.83 $0.00 $589.01 $365.82 $1,073.17 $108,082.94
62 $108,082.94 $954.83 $0.00 $594.55 $360.28 $1,073.17 $106,415.22
63 $106,415.22 $954.83 $0.00 $600.11 $354.72 $1,073.17 $104,741.94
64 $104,741.94 $954.83 $0.00 $605.69 $349.14 $1,073.17 $103,063.08
65 $103,063.08 $954.83 $0.00 $611.29 $343.54 $1,073.17 $101,378.63
66 $101,378.63 $954.83 $0.00 $616.90 $337.93 $1,073.17 $99,688.56
67 $99,688.56 $954.83 $0.00 $622.54 $332.30 $1,073.17 $97,992.85
68 $97,992.85 $954.83 $0.00 $628.19 $326.64 $1,073.17 $96,291.50
69 $96,291.50 $954.83 $0.00 $633.86 $320.97 $1,073.17 $94,584.47
70 $94,584.47 $954.83 $0.00 $639.55 $315.28 $1,073.17 $92,871.76
71 $92,871.76 $954.83 $0.00 $645.26 $309.57 $1,073.17 $91,153.33
72 $91,153.33 $954.83 $0.00 $650.99 $303.84 $1,073.17 $89,429.18
73 $89,429.18 $954.83 $0.00 $656.73 $298.10 $1,073.17 $87,699.28
74 $87,699.28 $954.83 $0.00 $662.50 $292.33 $1,073.17 $85,963.61
75 $85,963.61 $954.83 $0.00 $668.29 $286.55 $1,073.17 $84,222.16
76 $84,222.16 $954.83 $0.00 $674.09 $280.74 $1,073.17 $82,474.90
77 $82,474.90 $954.83 $0.00 $679.91 $274.92 $1,073.17 $80,721.82
78 $80,721.82 $954.83 $0.00 $685.76 $269.07 $1,073.17 $78,962.89
79 $78,962.89 $954.83 $0.00 $691.62 $263.21 $1,073.17 $77,198.10
80 $77,198.10 $954.83 $0.00 $697.50 $257.33 $1,073.17 $75,427.43
81 $75,427.43 $954.83 $0.00 $703.41 $251.42 $1,073.17 $73,650.86
82 $73,650.86 $954.83 $0.00 $709.33 $245.50 $1,073.17 $71,868.36
83 $71,868.36 $954.83 $0.00 $715.27 $239.56 $1,073.17 $70,079.93
84 $70,079.93 $954.83 $0.00 $721.23 $233.60 $1,073.17 $68,285.53
85 $68,285.53 $954.83 $0.00 $727.21 $227.62 $1,073.17 $66,485.15
86 $66,485.15 $954.83 $0.00 $733.21 $221.62 $1,073.17 $64,678.77
87 $64,678.77 $954.83 $0.00 $739.23 $215.60 $1,073.17 $62,866.37
88 $62,866.37 $954.83 $0.00 $745.28 $209.55 $1,073.17 $61,047.92
89 $61,047.92 $954.83 $0.00 $751.34 $203.49 $1,073.17 $59,223.42
90 $59,223.42 $954.83 $0.00 $757.42 $197.41 $1,073.17 $57,392.83
91 $57,392.83 $954.83 $0.00 $763.52 $191.31 $1,073.17 $55,556.14
92 $55,556.14 $954.83 $0.00 $769.64 $185.19 $1,073.17 $53,713.33
93 $53,713.33 $954.83 $0.00 $775.79 $179.04 $1,073.17 $51,864.38
94 $51,864.38 $954.83 $0.00 $781.95 $172.88 $1,073.17 $50,009.26
95 $50,009.26 $954.83 $0.00 $788.13 $166.70 $1,073.17 $48,147.96
96 $48,147.96 $954.83 $0.00 $794.34 $160.49 $1,073.17 $46,280.46
97 $46,280.46 $954.83 $0.00 $800.56 $154.27 $1,073.17 $44,406.73
98 $44,406.73 $954.83 $0.00 $806.81 $148.02 $1,073.17 $42,526.75
99 $42,526.75 $954.83 $0.00 $813.07 $141.76 $1,073.17 $40,640.51
100 $40,640.51 $954.83 $0.00 $819.36 $135.47 $1,073.17 $38,747.98
101 $38,747.98 $954.83 $0.00 $825.67 $129.16 $1,073.17 $36,849.14
102 $36,849.14 $954.83 $0.00 $832.00 $122.83 $1,073.17 $34,943.97
103 $34,943.97 $954.83 $0.00 $838.35 $116.48 $1,073.17 $33,032.46
104 $33,032.46 $954.83 $0.00 $844.72 $110.11 $1,073.17 $31,114.57
105 $31,114.57 $954.83 $0.00 $851.12 $103.72 $1,073.17 $29,190.28
106 $29,190.28 $954.83 $0.00 $857.53 $97.30 $1,073.17 $27,259.59
107 $27,259.59 $954.83 $0.00 $863.97 $90.87 $1,073.17 $25,322.45
108 $25,322.45 $954.83 $0.00 $870.42 $84.41 $1,073.17 $23,378.86
109 $23,378.86 $954.83 $0.00 $876.90 $77.93 $1,073.17 $21,428.79
110 $21,428.79 $954.83 $0.00 $883.40 $71.43 $1,073.17 $19,472.23
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112 $17,509.14 $954.83 $0.00 $896.47 $58.36 $1,073.17 $15,539.50
113 $15,539.50 $954.83 $0.00 $903.03 $51.80 $1,073.17 $13,563.30
114 $13,563.30 $954.83 $0.00 $909.62 $45.21 $1,073.17 $11,580.51
115 $11,580.51 $954.83 $0.00 $916.23 $38.60 $1,073.17 $9,591.12
116 $9,591.12 $954.83 $0.00 $922.86 $31.97 $1,073.17 $7,595.09
117 $7,595.09 $954.83 $0.00 $929.51 $25.32 $1,073.17 $5,592.41
118 $5,592.41 $954.83 $0.00 $936.19 $18.64 $1,073.17 $3,583.05
119 $3,583.05 $954.83 $0.00 $942.89 $11.94 $1,073.17 $1,567.00
120 $1,567.00 $954.83 $0.00 $949.61 $5.22 $1,073.17 ($455.78)
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345 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
346 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
347 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
348 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
349 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
350 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
351 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
352 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
353 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
354 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
355 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
356 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
357 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
358 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
359 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
360 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
$114,579.67 $71,675.68 $42,903.99 $128,780.09 $0.00
Total Payments Total Principal Total Interest Total Prepayment
 Refinancing Spreadsheet
Personal Finance: Another Perspective

The following is an attemp to help you in the refinance process. Input your current loan information, the original months of the loa
until the loan is paid off. Include only Principal and interest. Add the new refinance loan information as well, including the propos

Analysis 1 gives an Internal Rate of return looking at your fees and points as your cash outflows and your savings as your inflows.
assumes we are looking at this as an investment, with the costs of the refinance as the outflows and the savings as the inflows to the

Analysis 2 gives the straight break even cost analysis based on the number of months in the new loan. Since it does not consider th
if your break even is less than 3 years and you plan to be in the home for at lease 3 years to do it. If the breakeven is 3-5 years I wo
than 5 years I would not do it as you are likely to move in 5-7 years.

Analysis 3 gives a total cost analysis. It calculates the total amount of money you will spend in both situations. If your Total Cost
spend less overall with the refinance, I would consider it. If you will end up paying more with the refinance, I would not consider

Current Loan Information New Refinance Loan Infor

Beginning Loan Balance 150,000 Total Fees from the New L

Interest Rate (APR) 6.00%

Original Months of the Loan 360
Original Years of the Loan 30

Current Loan Monthly Principal and Interest Pmts $899.33

Months Remaining to Pay on the Loan 240

Years Remaining to Pay on the Loan 20
Remaining Principal Owed on the Loan $125,529

Analysis 1: Calculating your Internal Rate of Return

Outflows: All costs and fees for the loan 4,000

Inflows: Monthly savings from the prepayment

Existing Loan Payment 899.33
New Loan Payment 845.87
Savings each month 53.46 New Loan Information
Number of Periods for the Savings 240.00
Future value
Set PV = -4000$.00, n = 240, PMT = 53$.46 and Solve for your interest rate
Internal Rate of Return 15.3%

Internal Rate of Return Recommendation: Yes, Refinance

Logic:
If IRR is greater than your risk free return, then refinance

Analysis 2: Break Even Analysis (no TVM analysis)

Remaining Principal Owed on Old Loan 125,529

New Loan Amount 125,529
Interest Rate (APR) on New Loan 5.25%
Months Refinanced to: 240

Old Payment $899.33

New Payment $845.87
Monthly Savings from the Refinance 53.46

Total New Fees/Costs 4,000

Breakeven Point in Months 74.82

Breakeven Point in Years 6.24

Breakeven Recommendation: Yes, But Analyze Carefully

Logic:
If the Breakeven Analysis is < 4 years, I would definitely refinance
If the Breakeven Analysis is < 7 years, I would think seriously about the refinance
If the Breakeven Analysis is > 7 years, I would not likely refinance as you may move

Analysis 3: Total Cost Analysis (no TVM)

New Amount to Borrow. This includes all new

costs added to the loan amount 4,000
Interest Rate (APR) on New Loan 5.25%
Months Refinanced to: 240

Total Payments Remaining on Old Loan

Number of Months remaining 240
Monthly Principal and Interest $899.33

E. Total Amount to Pay till Loan is Repaid 215,838

F. Total Payments to be made on Refinanced Loan

Number of Months remaining 240
Monthly Principal and Interest $845.87
Total New Fees/Costs 4,000
$207,008

Total Savings (or Loss) 8,830

Total Cost Recommendation: Yes, think about it

Logic:
If the total cost with the refinance is less than you would pay without the refinance, then refinance
 Spreadsheet
Another Perspective

mation, the original months of the loan, and the remaining months
mation as well, including the proposed months to pay off the loan.

s and your savings as your inflows. It is a TVM calculation. It

and the savings as the inflows to the analysis.

w loan. Since it does not consider the time value of money, the logic is
it. If the breakeven is 3-5 years I would consider it. If it is greater

n both situations. If your Total Cost Savings is positive, i.e., if you will
the refinance, I would not consider it.

New Refinance Loan Information

Total Fees from the New Loan:

Loan Origination/Processing Fees 4,000
Discount Points (in dollars)
Prepayment fees
Application Fee
Credit Check
Attorney's Fees (Yours)
Attorney's Fees (Lender)
Title Search
Title Insurance
Apraisal Fee
Inspections
Local fees (taxes, transfers)
Document prep
Other Fees
Other Fees
Other Fees
Total Fees from the New Loan 4,000

New Loan Information

Amount Needed to Borrow to Cover Current Loan $125,529

Costs and Fees from the New Loan 4,000

Total Amount of Loan and Fees $129,529

Interest Rate (APR) on New Loan 5.25%

Number of Months Refinanced: (months on new loan) 240

New Monthly Principal and Interest Payments $845.87

Required Rate of Return for IRR Calculation 15%

Summary Recommendations
versus this Refinance Loan:

Analysis 1: Internal Rate of Return Refinance > Required

IRR Rate
Internal Rate of Return Recommendation 15.3% Yes

Analysis 2: Breakeven Years Breakeven

in Years
Breakeven Analysis Recommendation: 6.24 Yes

Analysis 3: Total Costs Overall

Savings
Total Cost Analysis Recommendation: 8,830 Yes

Overall Recommendation: Yes, Refinance

Logic:
If all recommendations are Yes, then I would refinance.
If two recommendations are Yes, I would do more analysis
If only one recommendation is Yes, I would not do the refinance

Memo Calculations Only (not part of the analysis)

(to help determine the amount remaining to finance)

Payment Amount 899.33

Number of remaining months 240
Interest Rate 6.00%
Monthly Principle Oweing $125,529
 Break Even Fees for Zero IRR

Break Even Fees for Required Rate of Return

1

3
 Buying Down Points Analysis
Personal Finance: Another Perspective

The following is an attemp to help you in the refinance process. Input your current loan information, the original months of the loa
until the loan is paid off. Include only Principal and interest. Add the new loan information as well, including the proposed month

Analysis 1 gives an Internal Rate of return looking at your fees and points as your cash outflows and your savings as your inflows.
assumes we are looking at this as an investment, with the costs of the refinance as the outflows and the savings as the inflows to the

Analysis 2 gives the straight break even cost analysis based on the number of months in the new loan. Analysis 2 calculates the tot
If your break even is less than 4years and you plan to be in the home for 4 years, I would do it. If the breakeven is 4-7 years I wou
than 7 years I would not do it as you are likely to move in 5-7 years. If your Total Cost Savings is positive, I would consider it: if

Loan #1 Information Loan #2 Information

Beginning Loan Balance 250,000 Beginning Loan Balance

Interest Rate (APR) 6.00% Interest Rate (APR)
Number of Months 360 Number of Months
Points 1 Cost 2,500.00 Points
Other Fees Other Possible Fees for the Buy Down
Total Costs and Fees 2,500.00 Total Costs and Fees for the Buy Down

Total Amount Received 247,500.00 Total Amount Received

Investors Risk-free Rate

Principle and Interest Payment Calculations 2. Breakeven Analysis (No TVM)

Loan #1 Principle and Interest $1,498.88
Loan #2 Principle and Interest $1,473.82 A. A. Loan #1 Principle and Interest
Monthly Savings from Loan #2 $25.06 Loan #2 Principle and Interest
B. Monthly Savings from Loan #2
1. Internal Rate of Return Analysis C. Cost of the Buy Down Points

A. Additional costs and fees for the buydown 2,551.02 Breakeven Point in Months (A/B)
Breakeven Point in Years (C/12)
Loan A Costs & Fees 2,500.00 Difference 2,551.02
Loan B Costs & Fees 5,051.02 Recommendation
Logic: If BE < 4 years, Yes, <7 years, Lik
B. Monthly Savings
Loan #1 Principle and Interest Costs $1,498.88 Summary Reco
Loan #2 Principle and Interest Costs $1,473.82 versus this Buying
Savings $25.06
C. Number of months savings 360 Analysis 1: Internal Rate of Return

Set PV = -2551$.02, n = 360, PMT = 25$.06 and Solve for your interest rate Internal Rate of Return Recommen
Internal Rate of Return (monthly) 0.95%
Analysis 2: Breakeven Years
Internal Rate of Return (annual) 11.4%
If IRR is greater than your risk free return, then refinance Breakeven Analysis Recommendat
ysis
ive

he original months of the loan, and the remaining months

cluding the proposed months to pay off the loan.

our savings as your inflows. It is a TVM calculation. It

savings as the inflows to the analysis.

Analysis 2 calculates the total costs of the loans.

breakeven is 4-7 years I would consider it. If it is greater
tive, I would consider it: if not, I would not consider it.

252,551
5.75%
360 202.0408
2 Cost 5,051.02
e Fees for the Buy Down
nd Fees for the Buy Down 5,051.02

247,500

isk-free Rate 6.0%

lysis (No TVM)

rinciple and Interest $1,498.88

Principle and Interest $1,473.82
Savings from Loan #2 $25.06
e Buy Down Points 2,551.02

n Months (A/B) 101.81

en Point in Years (C/12) 8.48

Likely not a good idea

< 4 years, Yes, <7 years, Likely, >7 years, Not a good idea.

Summary Recommendations
versus this Buying Down Decision:

nternal Rate of Return Buy Down > Required

IRR Rate
Rate of Return Recommendation 11.4% Yes

Breakeven Years Breakeven <7

in Years Years
en Analysis Recommendation: 8.48 No