Your home, your numbers

The calculator

Set the price, the down payment, the policy contribution and the mortgage rate, and see the plan for your own home.

You pay, years 1–15: $16,266.67 a month
Years 16–30: $0 projected

Home price$4,000,000

Down payment20%

$800,000 to the home. The mortgage is $3,200,000.

Policy contribution30%

$1,200,000 to the policy. The program’s guideline is 30%.

Mortgage rate6.1%

An assumption, the same in both cases. Not a rate offer.

Compare against

A traditional mortgagePaying cash

For a $4,000,000 home

Illustration

Committed at purchase: $2,000,000A traditional purchase commits $800,000.
You pay, years 1–15: $16,266.67a monthTraditional: $19,391.83 a month.
You pay, years 16–30: $0.00a month, projectedProjected policy cash of $370,000 a year covers the $326,119 payment.

Your cash position, year by year

Everything you have paid in, less projected policy cash received, against the same purchase made the other way.

+$7.57M−$7.78MEvenYear 42

Family Office Mortgage, projected Traditional mortgage

Line by line

MeasureTraditional mortgageFamily Office Mortgage

At purchase

Down payment$800,000$800,000

Policy contribution—$1,200,000

Total committed$800,000$2,000,000

Years 1 to 15

Monthly mortgage paymentProgram: interest only$19,391.83$16,266.67

Mortgage balance at year 15$2,283,356$3,200,000

Years 16 to 30

Monthly mortgage paymentProgram: principal and interest over 15 years$19,391.83$27,176.61

Projected policy cash, per year—$370,000

What you pay, per month$19,391.83$0 projected

Projected cash left over, per year—$43,881

Year 31 onward

Mortgage paymentsNoneNone

Projected policy cash, per year, through year 62—$370,000

Quoted remaining death benefit—$2,600,000

The whole picture, through year 62

Total you put in$7,781,060$4,928,000

Mortgage payments made by the policy, projected—$4,891,789

Projected policy cash paid to you, years 16 to 62—$12,498,211

Cash received, less cash put in−$7,781,060+$7,570,211 projected

Illustration. Both cases assume a 6.1% mortgage note rate, a 20% down payment, and no investment of money kept or saved. The program’s projected policy cash is a quoted figure scaled to the policy contribution; it is not derived by this model and is not guaranteed. The base case assumes no further personal premiums, financing interest or bank-exit payments. Property taxes, home insurance, maintenance, closing and advisory costs and tax effects are excluded.

How each line is calculated

Traditional payment. Principal × r ÷ (1 − (1 + r)⁻³⁶⁰), where r is the annual rate divided by 12.
Program, years 1 to 15. Principal × r. Interest only; the balance stays at $3,200,000.
Program, years 16 to 30. The full $3,200,000 amortized over the remaining 180 months, which is why the payment is 67% higher than in the first fifteen years.
Projected policy cash. $370,000 a year on a $1,200,000 contribution in the reference case, scaled in proportion. It covers 113% of the later mortgage payment as illustrated.
Total you put in. Initial capital plus every mortgage payment not funded by projected policy cash.

The year-by-year ledger

YrYou payPolicy paysCash to youBalance

0$2M——$3.2M

1$195K——$3.2M

2$195K——$3.2M

3$195K——$3.2M

4$195K——$3.2M

5$195K——$3.2M

6$195K——$3.2M

7$195K——$3.2M

8$195K——$3.2M

9$195K——$3.2M

10$195K——$3.2M

11$195K——$3.2M

12$195K——$3.2M

13$195K——$3.2M

14$195K——$3.2M

15$195K——$3.2M

16—$326K$44K$3.07M

17—$326K$44K$2.92M

18—$326K$44K$2.77M

19—$326K$44K$2.61M

20—$326K$44K$2.44M

21—$326K$44K$2.25M

22—$326K$44K$2.06M

23—$326K$44K$1.85M

24—$326K$44K$1.64M

25—$326K$44K$1.4M

26—$326K$44K$1.15M

27—$326K$44K$892K

28—$326K$44K$613K

29—$326K$44K$316K

30—$326K$44K—

31——$370K—

32——$370K—

33——$370K—

34——$370K—

35——$370K—

36——$370K—

37——$370K—

38——$370K—

39——$370K—

40——$370K—

41——$370K—

42——$370K—

43——$370K—

44——$370K—

45——$370K—

46——$370K—

47——$370K—

48——$370K—

49——$370K—

50——$370K—

51——$370K—

52——$370K—

53——$370K—

54——$370K—

55——$370K—

56——$370K—

57——$370K—

58——$370K—

59——$370K—

60——$370K—

61——$370K—

62——$370K—

Have Kent prepare yours

This calculator scales a reference illustration. Your own comparison uses your purchase, a lender’s terms and a carrier illustration for the person who would be insured.

See if you qualify

Mortgage figures are calculated from the standard amortization formulas. Projected policy cash scales a quoted illustration of $370,000 a year on a $1,200,000 contribution; a proposal uses a carrier illustration for the person insured. Property taxes, home insurance, upkeep, closing and advisory costs and tax effects are not included.

How the risks are managed

By qualification

Find out if it is open to you.

Three ranges tell you where you stand against the published criteria. If you meet them, Kent Chesley will speak with you personally.

Prefer to talk? Call him directly at 949-293-8686.

The calculator

Your cash position, year by year

Line by line

Keep this comparison

Have Kent prepare yours

Find out if it is open to you.