The rate of return assumptions used in the program and the rate of return generated by the calculator should not be considered as suggesting or guaranteeing any rate of return or level of performance on any product, service or strategy offered by Homestead Advisers or Homestead Financial Services Corp., including any Homestead Fund.
Important
This analysis compares the net account values at the end of the term of the loan of the scenario using the same set of returns in which you had spent your money to the scenario in which you had borrowed money to fund your goal expense(s). The scenario with the higher net account value is deemed favorable. The analysis then accumulates the results of all the trials to determine the consideration.
Your interest rate and monthly payment amount are two factors that could play a significant role in deciding whether to spend from your assets or borrow. This program allows you to make changes to your interest rate and/or add an additional monthly principal payment to see the impact on the analysis.
This tool is intended for analysis and running scenarios only and is not considered an application for credit for any lending product. Scenario results do not constitute a recommendation or referral for any lending product, nor does it guarantee the approval or terms of any lending product. This should not be construed as tax advice.
Mortgage rates use average interest rate posted by Bankrate in October 2022. Rates for Personal Loans, Auto Loans, Securities Based Line of Credit, and Home Equity Line of Credit are based on national averages. Rates are based on no existing relationship or automatic payments. The rates presented are for educational purposes and do not constitute an actual commitment to lend or an offer to extend credit.
Monte Carlo simulations are used to show how variations in rates of return each year can affect your results. A Monte Carlo simulation calculates the results of your analysis by running it many times, each time using a different sequence of returns. Some sequences of returns will give you better results for spending, and some will give you better results for borrowing. These multiple trials provide a range of possible results. The results displayed may vary with each use and over time.
The return assumptions in this analysis are not reflective of any specific product, and do not include any fees or expenses that may be incurred by investing in specific products. The actual returns of a specific product may be more or less than the returns used in in this analysis. It is not possible to directly invest in an index. Financial forecasts, rates of return, risk, inflation, and other assumptions may be used as the basis for illustrations. They should not be considered a guarantee of future performance or a guarantee of achieving overall financial objectives. Past performance is not a guarantee or a predictor of future results of either the indices or any particular investment.
For additional information or to explore lending solutions, please contact a loan specialist.
IMPORTANT: The projections or other information generated by iBlocks regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results.