04 · Total cost analysis
Total cost analysis
$685,000 · $137,000 down · 4 scenarios
Purchase
$
$
Scenarios
%
Term
$
%
Term
$
%
Term
$
%
Term
$
Escrow · monthly
$
$
$
Reinvestment
applied to monthly savings vs cheapest payment
%
Scenario summary
Conv 30
6.750%
pts 0.00
$3,554.32 /mo P&I
Conv 15
5.875%
pts 0.00
$4,587.41 /mo P&I
FHA 30
6.375%
pts 0.50
$3,418.81 /mo P&I
Buydown 30
4.750%
pts 2.75
$2,858.63 /mo P&I
Total cost by horizon
Includes payments + closing + remaining balance payoff at horizon. Winner per row highlighted.
| Horizon | Conv 30 | Conv 15 | FHA 30 | Buydown 30 |
|---|---|---|---|---|
| 5-yr | $776K | $739K✓ | $770K | $751K |
| 7-yr | $860K | $800K✓ | $850K | $814K |
| 10-yr | $982K | $877K✓ | $966K | $904K |
| 15-yr | $1.17M | $955K✓ | $1.14M | $1.04M |
| 30-yr | $1.53M | $1.08M✓ | $1.49M | $1.31M |
Unrecoverable cost (D4)
Interest + MI + closing + points. Principal reduction is excluded (it builds equity).
Conv 30
$353K at 10-yr
Conv 15
$248K at 10-yr
FHA 30
$337K at 10-yr
Buydown 30
$275K at 10-yr
Equity build-up (purchase)
Assumes property value holds at $685,000.
| Horizon | Conv 30 | Conv 15 | FHA 30 | Buydown 30 |
|---|---|---|---|---|
| 5-yr | $171K | $269K | $173K | $184K |
| 7-yr | $187K | $334K | $191K | $206K |
| 10-yr | $218K | $447K | $222K | $243K |
| 15-yr | $283K | $685K | $289K | $317K |
| 30-yr | $685K | $685K | $685K | $685K |
Reinvested monthly savings · 4.00% APY
Future value of the (monthly P&I − cheapest monthly P&I) difference reinvested at the opportunity rate.
| Horizon | Conv 30 | Conv 15 | FHA 30 | Buydown 30 |
|---|---|---|---|---|
| 5-yr | $46K | $115K | $37K | $0 |
| 7-yr | $67K | $167K | $54K | $0 |
| 10-yr | $102K | $255K | $82K | $0 |
| 15-yr | $171K | $425K | $138K | $0 |
| 30-yr | $483K | $1.20M | $389K | $0 |
Informational comparison only. Equity depends on actual property-value changes. Closing costs, APR, and ancillary fees vary by lender and locality. Not an offer of credit.