The Garcias Are Done Playing the Long Game
David and Maria Garcia are a couple one year into a 30-year fixed mortgage on their Colorado Springs home. They have solid income, save consistently every month, and had never really questioned whether their mortgage was working as hard as it could for them.
That changed when a friend mentioned the Equity Builder Loan. After a conversation with Todd and Aaron, they realized they had been paying down their balance slower than they thought while sending a significant portion of every payment straight to the bank as interest.
Todd ran their numbers side by side so David and Maria could see exactly what staying on their current mortgage would cost them versus making the switch. What they found was hard to ignore.
David and Maria Garcia
Fictional borrower profile
| Current Home Value | $800,000 |
| Remaining Balance | $640,000 |
| Years Remaining | 29 years |
| Combined Net Deposits | $15,000/mo |
| Monthly Expenses | $11,179/mo |
| Monthly Surplus | $2,000/mo |
THE NUMBERS SIDE BY SIDE
Staying Put vs Refinancing to the EBL
Staying on 30-Year Fixed
| Rate | 5.00% |
| Monthly Payment | $3,487 |
| Total Interest Remaining | $573,511 |
| Payoff Timeline | 29 years |
| Equity Access | Refinance required |
Refinancing to EBL
| Rate | 6.929% variable |
| Monthly Payment | Interest only |
| Total Interest Remaining | $380,483 |
| Payoff Timeline | ~15 years |
| Equity Access | From Day 1 |
| Effective APR | 3.390% |
Disclaimer:
This is a fictional example for illustrative purposes only. Individual results will vary based on remaining loan balance, income, spending habits, and market conditions. Contact Todd or Aaron for a personalized illustration.
HOW IT PLAYS OUT
A Year in the Life of the Equity Builder Loan
Month 1: The Refinance Closes
The Garcias move their $2,000 monthly surplus into the EBL checking account. That night the balance sweeps against the $640,000 remaining loan balance. Interest on day two is calculated on a lower number than day one.
Month 3: The Gap Widens
Three months in, the Garcias have reduced their balance beyond what staying on their existing mortgage would have allowed. Every dollar of surplus is working against the balance every single day.
Year 1: Real Momentum
After 12 months the difference between what they owe and what they would have owed on the old mortgage is significant and growing. The more surplus they keep in the account, the faster the balance drops.
Year 15: Paid in Full
The Garcias own their home free and clear, 14 years ahead of where their old mortgage would have left them. They redirect $3,487 a month toward retirement savings and investments.
$193,027
Estimated interest saved
14 YRS
Paid off early
$3,487/MO
Freed up after payoff
$962,993
POTENTIAL WEALTH ACCUMULATION
***Based on investing the equivalent monthly payment at a 7% annual return for the remaining years after payoff. For illustrative purposes only. Results will vary.
YOUR TURN
See What the Numbers Look Like for You
The Garcias are a fictional example, but the math is real. Every refinance situation will look different depending on your remaining balance, income, and monthly cash flow. Todd and Aaron can run a personalized illustration for your situation at no cost and with no obligation.
Want to see your own numbers? Run the calculator or reach out to Todd and Aaron directly.