VTB

OurRealtor · Apr 17, 2011

[quote user=bizaro86] It was quite clear from my original post that I was dealing in hypotheticals. I made the numbers up as examples, as you had requested.

Eventhough I need to know how did you calculate those figures for hypothetical basis.

bizaro86 · Apr 17, 2011

[quote user=OurRealtor]Eventhough I need to know how did you calculate those figures for hypothetical basis

I made the interest rates up as two examples of something you could negotiate. You could offer 3 car washes and one children's birthday party hosting as yearly interest on a VTB. I just made up numbers that seemed reasonable for two situations.

As for the 18,000 savings, that's the interest savings over 5 years of a 360,000 mortgage at 3% instead of 4% fixed rates. It doesn't include any increased cash flow from not paying down principal in an interest only situation. (360,000*0.04 - 360,000*0.03) * 5 years