Harness the Power of Your Mortgage Presentation

Results After 15 Years

Brother "A"
Believes in "The Old Way" - paying off the mortgage as soon as possible

Brother "B"
Believes in "The New Way" - carrying a big, long mortgage & never paying it off

Received $22,368 in tax savings^2,4,5
Has $27,996 in savings and investments ^2,3,4,5
Owns home outright

Received $54,564 in tax savings^1,2,4,5
Has $305,886 in savings and investments^2,3,4,5
Remaining mortgage balance is $190,000 - and he has enough savings to pay it off and still have $115,886 left over, free and clear.

Results After 30 Years

Brother "A"

Brother "B"

Received $22,422 in tax savings^2,4,5
Has $634,052 in savings and investments^2,3,4,5
Owns home outright

Received $82,037 in tax savings^1,2,4,5
Has $1,263,390 in savings and investments^2,3,4,5
Owns home outright - so starts fresh and enjoys the same benefits once again.

Now...which do you think is the right course of action -
"The Old Way" or "The New Way"?

Remember...Cash is King - and Brother "B" now has
more than $1.2 million in savings and investments!

These hypothetical examples are for illustrative purposes only. Plans vary based on the needs and wants of the customer. Illustrated interest rates are based upon the interest rates compiled by Fannie Mae for January 2008. Private mortgage insurance would likely be required. However, this cost is not included in the examples above for illustrative purposes.

1. This example is based on a Fannie Mae Interest First loan. Interest only for 10 years, then the first loan converts to a 20-year amortizing loan on the 10th anniversary with a monthly payment of $1,375.
2. Assumes combined federal/state income tax rate of 32%. Assumes that interest paid is fully deductible.
3Assumes 8% rate of return. Rate of return may vary based on type of investment.
4. The interest on the portion of the credit extension that is greater than the fair market value of the dwelling is not tax deductible for federal income tax purpose.
5. The consumer should consult a tax advisor for further information about the deductibility of interest and charges.
6. Monthly payment amount does not include homeowner's insurance or property taxes.

This is not a solicitation or offer for the purchase of any product. Payments do not include amounts for taxes, insurance or any other products. Rates could change or be unavailable at the time of commitment or closing.