Total Cost Analysis shows you different loan programs side by side. It highlights the net cost over time of first and second if you are doing a piggy versus PMI, versus five-year interest-only, versus 30-year fixed versus an Option ARM.

Bottom line, you are able to compare a wide variety of loan scenarios over any given period of time. Here is where you can see the competitive advantage of making an extra payment or not. Of course, instead of making an extra payment, you may wish to invest that money. Thus the TCA will demonstrate the return you could expect and what your investment account would be worth if you invest consistently vs making an extra payment. With a Total Cost Analysis you can also compare the after-tax benefit of early paydown to that of equity investment.

1. Summary: The TCA provides you with a summary table which displays information on up to four loan programs, including their respective fees and monthly payments. Each program shows a first mortgage, and possibly a second. Although the table will show you which loan will provide you the lowest payment, such a loan may not be the right loan for your financial situation.
2. Total Cost Analysis: A true loan comparison cannot be made simply by comparing the payments that a loan offers. There are various other fees and issues which effect the overall cost of a loan. The table analyzes the difference in total overall cost of your home loan.
3. Mortgage Plan with Asset Accumulation: Your mortgage plan is designed to help you make an informed decision on a mortgage integrated with you overall financial plan. The analysis will display Real Estate value combined with potential investment account growth for years 3, 5 or longer.
4. Monthly Tax Benefit: The analysis allows you to consider the tax benefits of your home mortgage. By consolidating your non-tax deductible debt (credit cards, etc.) into your mortgage, you can save $$$. This of course is just an estimate—you will need to contact your tax consultant for advice.

With this tool, you will be better able to understand how each option impacts on your strategy and goals. The TCA performs the industry’s most powerful side-by-side analysis of the net cost of a loan over time. More importantly, it highlights two specific areas of the total loan cost. First, it measures the financial impact you would feel if you were to invest the savings of a given loan into an asset-accumulation account. Second, it demonstrates the power of repaying the loan and the savings.

Financial goals are a personal element. Because most individuals see their mortgage as being separate from their other financial instruments, they can miss opportunities to accelerate their objectives. As your mortgage planner, we have the unique software specially designed to help illustrate how your mortgage will impact your financial goals.