Category: Loan Analysis

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

Read More

Is it true there is a difference in a Life Insurance company’s “in advance” or “in arrears” loan rate?

The answer is NO. The insurance companies have really confused this issue ( In Advance vs In Arrears) because they mistakenly call it a “rate” when it is not. The in Advance “rate” should be called a factor because all it is for is to multiply the loan amount by to determine the payment when made up front. Any loan balance is charged the In Arrears rate (which is an actual rate) even if the loan payment is made in advance. The reason the loan payment is less is simply

Read More

Truth Tip, Amortization Schedule

For an Amortization Schedule on the Loan Analysis Calculator, you can switch the “Period Number” to “Start Date” by clicking on it and then your amortization schedule will have payments dates on it which you can adjust based on when you want the first payment to be.

Read More

Truth Tip, Loan Analysis

On the Loan Analysis Calculator, if you want to show skipping a payment on the loan payback, go the the middle and click the “compare” button, then you skip payments or change them on the blue lines.  

Read More

Truth Tip Loan Analysis Calculator

On the Loan Analysis calculator, you can title each of the loans (in addition to changing the title on the title bar) by right clicking on “loan 1” or “loan 2” and typing in 30 year mortgage and 15 year mortgage etc.

Read More

Using the Loan Analysis Calculator to show difference between a 15 and a 30 year mortgage payment if applied to PUA.

How do we show what the difference between a 15 and a 30-year mortgage payment would look like if applied to a PUA (paid up addition) on a life insurance policy?   Using the Loan Analysis Calculator we can see that when the savings rate and loan rate are the same, the gross costs of each mortgage are identical to each other when properly measured over the same time frame.  However, when the mortgage interest deduction is taken into account, the longer mortgage has less cost.   In order to show the difference

Read More