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Homeowner current loan: $500K, 2.85%
Monthly payment: $2,100
TRADITIONAL PREPAYMENT
Sell home & Pay Off amount:
$500K
New Home Loan amount & rate:
$500K, 7.0%
New monthly payment:
$3,300
RDP
PREPAYMENT
Sell home & Pay Off amount:
$420K
New Home Loan amount & rate:
$420K, 7.0%
New monthly payment:
$2,800
THE
BENEFITS
Pay Off $420K instead of $500K
$80K Principal Discount
New Home Loan amount:
$420K instead of $500K.
Business Case Example
CURRENT
TAKARA PROGRAM
Total assets: $30 billion
Portfolio FRM (#,$): 7,500, $5 billion
Avg. rate: 3.5%
Total unlocked value: $600 million
Borrower benefit per loan: $85,000
Bank fee per loan: $7,500
Bank Benefits
- New fees
- Origination flow
- Capital relief
- Improved liquidity
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