Home Purchase
Buying a home is one of the largest investments you can make. So large that the payments can keep you from achieving other savings goals. But now you can reduce your monthly payment by up to 25% and use some of the difference to save for college, retirement, or home improvement.
How Does It Reduce My Payment?
You can combine a conventional mortgage with an EARN to finance your home purchase. By doing this, the size of your conventional mortgage may be smaller. There are no payments on the EARN, so your total monthly outlay is reduced.
Example of the EARN Finance Mortgage
Before EARN Finance Mortgage
| Home Price | 20% Down Payment | 80% Jumbo Loan | Monthly Mortgage @6% |
|---|---|---|---|
| $585,000 | $117,000 | $468,000 | $2,806 |
After EARN Finance Mortgage
| Home Price | 20% Down Payment | 20% EARN | 60% Conforming Loan | Monthly Mortgage @5.8% |
|---|---|---|---|---|
| $585,000 | $117,000 | $117,000 | $351,000 | $2,060 |
Total monthly savings: |
$746 | |||
The total monthly savings provides many benefits, including:
- Making home ownership possible with affordable payments
- Freeing up cash for home improvements
- Savings for retirement/education
- Additional living expenses and additional insurance needs
Next: Mortgage Refinancing