EB and EF Master Calculations

Reference loan: $400,000 home · 20% down · $320,000 mortgage · T10 = 4.28% · EB rate = T10+200bps = 6.28% · EF rate = T10+300bps = 7.28% · 50bps servicing on outstanding principal
Home Value
$400,000
Down Payment
$80,000
Loan Amount
$320,000
T10 Rate
4.28%
EB Rate
6.28%
EF Rate
7.28%

Product Overview — Monthly Payment Comparison

Conventional
$1,976.54
30yr · standard amortization
EB Standard (Flat)
$1,976.54
30yr · flat fee + flat principal
EB 2 Parts (4-Phase)
$1,976.54
30yr · 4 phases, growing yield
ExitFirst (IO)
$1,450 / $1,500
EF 5 / EF 7 · IO · saves $526.54 or $476.54/mo vs conv

EquityBoost Standard Flat Amortization

Flat principal/mo = $320,000 ÷ 360 = $888.89
Flat fee/mo = $391,555.46 ÷ 360 = $1,087.65
Total monthly = $888.89 + $1,087.65 = $1,976.54 (same as conventional)

Conventional Mortgage

Reference baseline
Monthly P&I$1,976.54
Yr 1 Interest$19,990
Yr 1 Principal$3,734
Total Interest 30yr$391,555
Total Paid 30yr$711,555
Avg Investor Yield5.97%

EquityBoost Standard

All 360 months — flat split
Monthly Payment$1,976.54
Fee/mo (flat)$1,087.65
Principal/mo (flat)$888.89
Total Fees 30yr$391,555
Total Paid 30yr$711,555
Avg Investor Net Yield15.83%

Borrower Equity Advantage

EB Standard vs Conventional
Yr 1 Equity (Conv / EB)$83,729 / $90,667
Yr 5$101,214 / $133,333
Yr 10$130,230 / $186,667
Yr 15$169,918 / $240,000
Yr 20$224,201 / $293,333
Yr 30$400,000 / $400,000

EB Standard — Year-by-Year Investor Yield

Year Conv. Bal Conv. Equity Conv. Yield EB Bal EB Equity EB Fee Income EB Servicing EB Gross Y EB Net Y
30yr Total / Avg $400,000 5.97% — $400,000 $391,555 $24,067 16.29% 15.83%

EquityBoost 2 Parts 4-Phase Design

Phase 1 (Yrs 1–5): fee $1,355.31 + principal $621.23 = $1,976.54 — halfway between conv interest avg and EB flat fee
Phase 2 (Yrs 6–10): fee $1,329.45 + principal $647.09 = $1,976.54 — designed so Yr 6 net yield ≥ 5.15%, growing each year
Phase 3 (Yrs 11–15): fee $1,298.67 + principal $677.87 = $1,976.54 — yield continues to grow
Phase 4 (Yrs 16–30): fee $847.50 + principal $1,129.05 = $1,976.54 — forced reset to amortize remaining $203,228 over 180 months

Phase 1

Years 1–5 · 60 months
Fee/mo$1,355.31
Principal/mo$621.23
Yr 1 Net Yield4.59%
Yr 5 Net Yield5.11%
Bal End of Phase$282,726

Phase 2

Years 6–10 · 60 months
Fee/mo$1,329.45
Principal/mo$647.09
Yr 6 Net Yield5.15%
Yr 10 Net Yield5.85%
Bal End of Phase$243,901

Phase 3

Years 11–15 · 60 months
Fee/mo$1,298.67
Principal/mo$677.87
Yr 11 Net Yield5.90%
Yr 15 Net Yield6.88%
Bal End of Phase$203,228

Phase 4

Years 16–30 · 180 months
Fee/mo$847.50
Principal/mo$1,129.05
Yr 16 Net Yield4.52%
Yr 30 Net Yield74.79%
Bal End of Phase$0

EB 2 Parts — Year-by-Year Investor Yield

Year Phase EB2 Bal EB2 Equity EB2 Fee Income EB2 Net Yield vs Conv Yield vs EB Std Yield
30yr Avg $400,000 — 12.71% +6.74% −3.12%

ExitFirst 5 5-Year IO · Balloon

EF 5 monthly = $1,450.00 (interest only, no principal) on $320,000 base loan
60 monthly payments → balloon $320,000 at Year 5
Servicing: 50bps annual on $320k flat = $133.33/mo · Net to investor: $1,316.67/mo
Investor net yield: 4.94% (flat for entire 5-year term)
Designed to beat 5/1 ARM economics with 4% MMF compounding on borrower's monthly savings

EF 5 — Loan Terms

60 IO payments + balloon
Loan Amount$320,000
Term5 years
Monthly Payment$1,450.00
Total IO Payments$87,000
Balloon at Exit$320,000
Total Borrower Pays$407,000

EF 5 — Investor View

Flat yield, principal preserved
Investment$320,000
Monthly Fee Income$1,450.00
Servicing Fee (50bps)$133.33
Net to Investor/mo$1,316.67
Total IO 5yr$79,000
Total Net (incl balloon)$399,000
Net Yield (flat)4.94%

EF 5 — Borrower View

vs Conv 6.28%
Conv Monthly$1,976.54
EF 5 Monthly$1,450.00
Monthly Savings$526.54
5yr Cumul Savings$31,592
FV @ 4% MMF$34,909
vs Conv Equity Built+$13,695
Equity in Home (no apprec.)$80,000

EF 5 — Year-by-Year Investor Cashflow

Year Bal Outstanding EF Monthly EF Fee Income EF Servicing Net to Investor Gross Yield Net Yield Cumulative Net

ExitFirst 7 7-Year IO · Balloon

EF 7 monthly = $1,500.00 (interest only, no principal) on $320,000 base loan
84 monthly payments → balloon $320,000 at Year 7
Servicing: 50bps annual on $320k flat = $133.33/mo · Net to investor: $1,366.67/mo
Investor net yield: 5.13% (flat for entire 7-year term)
Higher payment than EF 5 to compensate investor for the longer hold period; designed to beat 7/1 ARM economics with 4% MMF compounding

EF 7 — Loan Terms

84 IO payments + balloon
Loan Amount$320,000
Term7 years
Monthly Payment$1,500.00
Total IO Payments$126,000
Balloon at Exit$320,000
Total Borrower Pays$446,000

EF 7 — Investor View

Flat yield, principal preserved
Investment$320,000
Monthly Fee Income$1,500.00
Servicing Fee (50bps)$133.33
Net to Investor/mo$1,366.67
Total IO 7yr$114,800
Total Net (incl balloon)$434,800
Net Yield (flat)5.13%

EF 7 — Borrower View

vs Conv 6.28%
Conv Monthly$1,976.54
EF 7 Monthly$1,500.00
Monthly Savings$476.54
7yr Cumul Savings$40,030
FV @ 4% MMF$46,108
vs Conv Equity Built+$14,364
Equity in Home (no apprec.)$80,000

EF 7 — Year-by-Year Investor Cashflow

Year Bal Outstanding EF Monthly EF Fee Income EF Servicing Net to Investor Gross Yield Net Yield Cumulative Net

All Products — Combined Year-by-Year View

Year Conv. Bal Conv. Eq Conv. Yld EB Bal EB Eq EB Net Y EB2 Bal EB2 Eq EB2 Net Y EF Bal EF Eq EF Net Y
30yr Avg — $400,000 5.97% — $400,000 15.83% — $400,000 12.71% $320,000* $80,000* 5.13%*

All Fees Included — EB Standard / EB2 vs GreenState 5.99%

GreenState fees: $3,147 total lender fees (no 1% origination per their stated policy) → Loan = $323,147 at 5.99% → PMT = $1,935.35/mo
EquityBoost fees: $1,000 processing/UW + 1.5% origination on $320,000 base = $5,800 → Loan = $325,800 at 6.28% → PMT = $2,012.37/mo
Monthly difference: EB costs $77.02/mo more than GreenState ($924.24/year extra)
EB2 phase splits scaled to $325,800 loan: P1 fee $1,379.87 + prin $632.49 · P2 fee $1,353.55 + prin $658.82 · P3 fee $1,322.21 + prin $690.16 · P4 fee $862.86 + prin $1,149.51
Year GS Bal GS Equity GS Monthly EB Std Bal EB Std Equity EB Std Monthly EB Std Adv EB2 Bal EB2 Equity EB2 Monthly EB2 Adv
30yr End $0 $400,000 $1,935.35 $0 $400,000 $2,012.37 $0 $0 $400,000 $2,012.37 $0
Net benefit Yr 5 (EB Std): +$29,165 equity advantage − ($77.02/mo × 60mo = $4,621 extra payments) = +$24,544 net
Net benefit Yr 5 (EB2): +$12,814 equity advantage − $4,621 extra payments = +$8,193 net
EB Standard maintains its biggest equity lead at Yr 17 (+$68,229). EB2 peaks at Yr 21 (+$37,122).

ExitFirst — TVM Comparison vs All Alternatives All Fees Rolled In

All products shown with typical fees rolled into loan — apples-to-apples comparison
Conv 6.28% (T10+200): $5,800 fees (1.5% origination + $1,000) → Loan $325,800 → PMT $2,012.37
GreenState 5.99%: $3,147 fees (no origination per their stated policy) → Loan $323,147 → PMT $1,935.35
7/1 ARM 5.85%: $3,200 fees (1% origination industry typical) → Loan $323,200 → PMT $1,906.69
5/1 ARM 5.53%: $3,200 fees (1% origination industry typical) → Loan $323,200 → PMT $1,841.18
EF 5 / EF 7: $5,800 fees ($1,000 + 1.5% origination) → Loan $325,800 → EF 5 PMT $1,450 · EF 7 PMT $1,500
Investor net yield (with fees): EF 5 4.84% · EF 7 5.03% (after 50bps servicing on $325,800)
Time-Value-of-Money assumption: Borrower invests monthly savings at 4.0% MMF rate (compounded monthly). Borrower's net wealth = future value of invested savings minus alternative's principal paid down (illiquid equity).

EF vs Conventional 6.28% (T10+200)

Year Conv Bal Conv P Paid (Equity) Conv Monthly EF Bal EF Monthly Save/mo Cumul Savings FV @ 4% MMF EF Net (FV − Conv Eq)

EF vs GreenState 5.99%

Year GS Bal GS P Paid (Equity) GS Monthly EF Bal EF Monthly Save/mo Cumul Savings FV @ 4% MMF EF Net (FV − GS Eq)

EF vs 7/1 ARM 5.85%

Year ARM Bal ARM P Paid (Equity) ARM Monthly EF Bal EF Monthly Save/mo Cumul Savings FV @ 4% MMF EF Net (FV − ARM Eq)

EF vs 5/1 ARM 5.53%

Year ARM Bal ARM P Paid (Equity) ARM Monthly EF Bal EF Monthly Save/mo Cumul Savings FV @ 4% MMF EF Net (FV − ARM Eq)
Verdict (with all fees rolled in): EF beats every alternative at both 5- and 7-year exits when borrower invests monthly savings at 4% MMF. Margins:
  • EF 5 vs Conv 6.28%: +$15,068 at Yr 5
  • EF 5 vs GreenState 5.99%: +$9,697 at Yr 5
  • EF 5 vs 7/1 ARM 5.85%: +$7,491 at Yr 5
  • EF 5 vs 5/1 ARM 5.53%: +$1,898 at Yr 5
  • EF 7 vs Conv 6.28%: +$16,358 at Yr 7
  • EF 7 vs GreenState 5.99%: +$8,590 at Yr 7
  • EF 7 vs 7/1 ARM 5.85%: +$5,406 at Yr 7

Why EF wins even with higher EF fees: EF's 1.5% origination ($4,800) is higher than competitor fees, but EF's monthly payment is so much lower than the alternatives' P&I payments that the cumulative monthly savings — when compounded at 4% MMF — outpace the principal equity built by the amortizing alternatives.

Key insight: The savings invested in a money market account remain LIQUID and accessible to the borrower (emergency fund, investment opportunity, down payment on next property), unlike home equity which requires a refi or sale to access. This makes EF particularly attractive for borrowers who:
  • Plan to exit (sell/refi) within 5–7 years
  • Want maximum monthly cash flow flexibility
  • Value liquidity over forced equity buildup
  • Have discipline to invest the savings rather than spend them

Investor pitch: EF 5 term 4.84% net yield · EF 7 term 5.03% net yield · Comparable to 5-year Treasury (~4.0–4.4%) with 50–80bps spread · First-lien residential collateral on owner-occupied property at 80% LTV · 100% principal preservation (full $325,800 returned at exit) · Known duration.

*EF balance and equity persist only through term (Yr 5 or Yr 7). After balloon, loan is paid off (refi, sale, or new EB origination).

Methodology recap: Investor net yield = (annual fee income received − annual servicing fee retained by EB) ÷ outstanding principal at start of year. Servicing = 50bps annual on outstanding balance, charged monthly. All four products use the same $320,000 reference loan and identical $400,000 home value. EB and EB2 share the 6.28% rate (T10+200); EF uses simple IO pricing competitive with ARM market rates.

Trade-off summary: EB Standard delivers the highest 30-yr avg yield (15.83%) by pushing fee income against the smallest balances late in life · EB2 4-Phase delivers smoother growing yields in the early/mid years (4.59% → 6.88% Yrs 1–15) · EF two-tier ($1,450/$1,500) beats every alternative including 5/1 ARM and 7/1 ARM when borrower invests savings at 4% MMF.