Why First Place?
Buying a home that is part of the First Place Program allows first time home buyers a number of options that make purchasing a home more financially viable. With the land payment deferred for 5 years, buyers are able to decide between making smaller, affordable monthly payments or payment off their home faster by allocating more towards each month’s mortgage.
Compare the two options and see what meets the needs of your family best!
Pay Less per Month!
Once you have been approved for financing, the amount of the land is taken off the total price of your home for the first 5 years. This means your monthly mortgage payments are smaller and more money can be saved for your other expenses – be it an exotic getaway, dance lessons for your kids, retirement fund, or anything else that life calls for!
Example:
| First Place | Non- First Place | |
| Cost of Home | $250,000 | $250,000 |
| Down Payment (Assuming minimum 5%) | $12,500 | $12,500 |
| Less Cost of Land Deferred for 5 years | -$33,318.71 | $0 |
| Cost of Mortgage Being Paid in First 5 Years | $204,181.29 | $237,500 |
| Interest Rate (5 year fixed mortgage) | 3.89% | 3.89% |
| Amortization Period | 25 Years | 25 Years |
| Payment Frequency | Monthly | Monthly |
| Payment Amount per Month | $1061.90 | $1,235.18 |
| Savings per Month | $173.28 | |
| Total Savings in 5 Years | $10,396.80 |
Pay Off Your Mortgage Faster!
Financing approval is required for the full amount of the home. Just as though you were paying for any other home, you would be paying a set amount per month on that price. Payments are slightly higher than the previous option, but because you are only being charged for the price of the home itself, the percentage of your money that goes into the principle amount instead of interest is significantly higher. Overall you are saving a lot of money in total interest payment!
Example:
| First Place | Non-First Place | |
| Cost of Home | $250,000 | $250,000 |
| Down Payment (Assuming minimum 5%) | $12,500 | $12,500 |
| Less Cost of Land Deferred for 5 years | -$33,318.71 | $0 |
| Cost of Mortgage Being Paid in First 5 Years | $204,181.29 | $237,500 |
| Interest Rate (5 year fixed mortgage) | 3.89% | 3.89% |
| Payment Frequency | Monthly | Monthly |
| Payment Amount per Month | $1,235.18 | $1,235.18 |
| Principle Outstanding after 5 Years | $165,957.97 + $33,318.71 (cost of land added back in) =$199,276.68 | $206,354.82 |
| Amortization Period | 23.99 Years | 25 Years |
| Total Savings in Interest | $14,970.39 |
*These calculations are examples only and some assumptions were made. Please contact your sales person and mortgage specialist for more information.