THE CALLOWAYS ARE BUYING THEIR FOREVER HOME
James and Rachel Calloway are established professionals purchasing a home that reflects where they are in life. Both have stable careers, save consistently, and have been through the homebuying process before. They are not chasing the lowest monthly payment. They want a smarter mortgage structure that builds equity faster and keeps more of their money working for them over time.
When they sat down with Todd, they qualified for both a traditional 30-year fixed mortgage and the Equity Builder Loan. With a $640,000 loan, combined net deposits of $15,000 per month, and monthly expenses of $10,931, the Calloways carry a $2,000 monthly surplus. Todd ran the numbers side by side so they could see exactly what each option would cost them over the full life of the loan. The difference was significant.
James and Rachel Calloway
Fictional borrower profile
| Purchase Price | $800,000 |
| Down Payment | $160,000 (20%) |
| Loan Amount | $640,000 |
| Combined Net Deposits | $15,000/mo |
| Monthly Expenses | $10,931/mo |
| Monthly Surplus | $2,000/mo |
THE NUMBERS SIDE BY SIDE
30-Year Fixed vs Equity Builder Loan
30-Year Fixed
| Rate | 5.75% |
| Monthly Payment | $3,734 |
| Total Interest Paid | $704,890 |
| Payoff Timeline | 30 years |
| Equity Access | Refinance required |
Equity Builder Loan
| Rate | 6.929% variable |
| Monthly Payment | Interest only |
| Total Interest Paid | $350,000 |
| Payoff Timeline | ~14 years |
| Equity Access | From Day 1 |
| Effective APR | 3.146% |
Projected Interest Savings
$354,890
Even though the start rate is higher, by using the Equity Builder Loan instead of a 30-year fixed, the Calloways save an estimated $354,890 in interest and pay off their home 16 years early.
HOW IT PLAYS OUT
A Year in the Life of the Equity Builder Loan
Month 1: The loan closes
The Calloways move their $2,000 monthly surplus into the EBL checking account. That night it sweeps against the $640,000 balance.
Month 3: Savings compound
Three months in, the Calloways have already reduced their balance beyond what a traditional mortgage would allow. Interest charges are dropping every single day.
Year 1: Real momentum
After 12 months, their balance is down significantly more than a 30-year fixed would be. With a higher loan amount, every dollar of surplus has an outsized impact on daily interest savings.
Year 9: Paid in full
The Calloways own their home free and clear. With 16 years left on what would have been a 30-year mortgage, they redirect $3,734 a month toward retirement and wealth building.
$354,890
Estimated interest saved
16 YRS
Paid off early
$3,734/MO
Freed up after payoff
$1,544,225
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 Calloways are a fictional example, but the math is real. Every borrower’s numbers will look different depending on income, loan amount, and spending habits. Todd and Aaron can run a personalized illustration for your situation at no cost and with no commitment.
Want to see your own numbers? Run the calculator or reach out to Todd and Aaron directly.