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Scenario Comparison and Analytics

Beyond single-loan amortization, the toolkit supports multi-scenario comparison and financial analytics for evaluating refinance, recast, or early payoff strategies.

🔁 Multi-Scenario Plotting

You can compare how multiple loan structures perform over time using:

mortgage plot --scenarios 400000 6.0 360 --scenarios 400000 5.25 360 --scenarios 400000 4.5 180

Each scenario is a tuple of:

  • Balance (e.g. 400000)
  • Interest Rate (e.g. 5.5%)
  • Term in Months (e.g. 360)

📈 The output is a plot comparing balance trajectories across all scenarios.

💡 Breakeven Analysis

This tool estimates when a refinance or lump sum recast becomes financially beneficial:

mortgage breakeven --monthly-savings 185 --closing-costs 4000

Outputs:

Breakeven reached in: 22 months

Use this to evaluate how long you need to hold the mortgage to recover refi costs.

📊 Effective APR Comparison

When paying points or closing costs, the nominal interest rate understates true cost. Use:

mortgage compare-apr --principal 400000 --rate 6.0 --term 360 --points 1.0 --fees 3000

This computes the IRR-based effective APR, taking upfront cost into account:

Effective APR: 6.2191%

🧠 Use Cases

  • Choose between 30-year and 15-year fixed
  • Compare rate buydown vs no-points option
  • Evaluate impact of biweekly payments
  • Quantify refinance timing sensitivity

🗃️ CLI and API Interoperability

All analytics functions are available:

  • From CLI (e.g. mortgage breakeven)
  • As Python functions (e.g. breakeven_analysis(...))

📎 Next: Command Line Usage