Category: Loan Analysis

New Button in Loan Analysis: Difference Between Payments

While the update may seem small, it has a huge impact on user friendliness. The update in question is a new “right-click” feature that does some simple math for you. That way you don’t have to fuss with the copy/paste function if you don’t want to. In a mortgage comparison, like we demonstrate here, it’s important to show the potential savings of a 15-year mortgage vs. a 30-year mortgage. Previously, to do so, you would have to calculate the difference between payments within the Future Value calculator. This meant a

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Can You Save More with a 30-Year Mortgage, Refinanced Every 10 Years?

What’s the major reason that people want to have their house paid off? In most cases, people fear a scenario where they can’t pay their mortgage, so they spend more money up front. Too often, this puts them in the scenario they were trying to avoid. It all comes down to control, and a 30-year mortgage simply gives you more control.  We’re going to run an experiment here, and see how you can actually save more money in your own pockets. Setting Up in Loan Analysis To begin, pull up

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A New Way to Calculate Opportunity Cost in Loan Analysis

If you use the Loan Analysis calculator, you’re likely familiar with the “Loan View” provision. This enables you to do a side-by-side comparison of two loans, or view each loan individually. In the latest update of the Truth Concepts software, you’ll now see a third button: “Opportunity Cost.”  The function of this button is to more clearly show what Todd has demonstrated in his comparison of a 15-year vs. 30-year mortgage. That is, you cannot separate the analysis from the time value of money.  In previous demonstrations, Todd has used

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Truth Tip, Loan Analysis (Remaining Loan Schedule)

How do you calculate the remaining number of months on a loan? This Loan Analysis “hack” makes it simple to determine, all you need is the remaining loan balance, the rate, and the monthly payment. For example, let’s say your client had a remaining loan balance of $50,000 and they’re paying 5% interest on that loan. Their payment is $1000, and neither of you know the exact time frame remaining on that loan. In Loan Analysis, once you fill in the loan balance and the interest rate, right click on

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Analyzing Interest Rates: When Is 2.99% More Than 5%?

When analyzing deals, you must pay attention to more than the interest rates alone. In the past few weeks, GM published an offer for a 2020 Escalade. The offer was either for 2.99% APR, or a $9,500 rebate. Is the offer all it’s cracked up to be? Let’s find out. The MSRP, or sticker price, of the Escalade is $76,490. The Dealer was offering it at a $1,500 discount. So $74,934. In order to get a full understanding of the difference between these two deals, we’ll use the Loan Analysis

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Prosperity Proof #2: Choosing the Right Mortgage

When choosing a mortgage loan, it’s essential to look at all of the facts. Buying a home is a huge financial decision. Being equipped with the right knowledge will ensure you and your clients have the right strategy. A 15-year mortgage has the appeal of a quick payoff, but is it better than a 30-year mortgage? Some people would say yes. We’ll show you how to figure it out. In this installment of Prosperity Proofs, we’ll compare a “typical financial planning mortgage” to a mortgage in line with the Prosperity

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