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Based on a 35% tax bracket the after tax revenue stream of SIMP is $509 please refer to cell J1 VS the 30-Year which is $424 please refer to cell T12 SIMP’s the after tax revenue stream is $72 a month higher, this gives lenders $72 a month more revenue over 10 years to reinvest due to the fact SIMP borrowers monthly payments are composed of $100% principal oppose to 90% interest, in the case of the 30-year model.

How do we quantify how much more yield SIMP would receive due to having $72 more dollars each month to reinvest over 10 years? Well one way would be to SIMPly add this amount to our present revenue stream. Please refer to cell J3 SIMP’s effective 10 year yield average would be 6.93%. SIMP produces .93 basis points higher yield at half the risk of a 30 year mortgage. Given SIMP plenty of cushion against yield spread volatility.

So how does SIMP benefit the borrower? Please view cell K8. In 10 years SIMP delivers $25,414 more equity, twice the amount of equity it would have received under the 30- year model and cut the term of the loan from 30 to 20