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A Sample Interest Rate Scenario

Look at the difference 3/8% in interest rate can make. As an example, 3/8% interest on a loan amount of $250,000, is a difference of *$57.49 per month! That is $689.88 per year and $3,449 over 5 years. This amount of money could pay for a lot of groceries, gas, utilities, or even a vacation. 


In addition, 3/8% in interest savings can mean more debt reduction on your home loan. After five years, on a loan amount of $250,000, you will have paid down your loan balance by an additional $1272 by having the lower rate.


If you started with $1000 and invested that same $57.49 a month into a conservative investment returning 4%, that $1000 would turn into $5032.52* after a five year period of time.


In summary, using the above scenario, an interest rate savings of 3/8% is going to put a minimum of $3449 in your pocket in the first 5 years. It will also reduce what you owe on your home loan by an additional $1272. Invested, with the help of a professional, this amount can grow. 


Imagine how that picture looks after 10 years. Rate matters to you, your family and your financial future. For a customized quote, please contact Nick Vallario at 480-999-0086 or


* Covenant Home Loans and Nick Vallario are not licensed, financial planners. The examples above are based on simple assumptions. Please consult a licensed financial planner for any investment guidance or advice regarding the above scenario.

Covenant Home Loans: NMLS1811403


Nick Vallario: NMLS 180861


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