“Mitch” bought his home in April of 2018 for $___________. He only had enough for a 3% down payment, so he was required to pay mortgage insurance every month, which came to $228 per month. The interest rate on his loan was 4.625%, and his total payment was $__________ per month.
Home values have risen steadily in Utah since then, so we ran some analyses for Mitch, and were able to get a new appraisal on his home, which showed that it was now appraised at $___________. In less than 2 year’s Mitch’ equity in his home (the percentage of the home he owned free and clear) had grown to 13%! As a result, we were able to lower his interest rate from 4.625% to 3.56%. We reduced his monthly mortgage insurance payment from $228 to $55 and lowered the total monthly payment from $_______ to $_______ — saving Mitch $395 per month in payments.