Explaining how City First Homes lowers your monthly costs [Graphic]

We at City First Homes, the DC Government-created housing trust, are excited about our program's potential to help lower the monthly costs of homeownership for DC families. We created a simple picture that shows just how the program can reduce monthly mortgage costs:

The picture assumes a mortgage rate of 5.3%, although interest rates will vary for each borrower.

Basically, instead of borrowing one mortgage loan at a higher interest rate, you can replace a significant portion of your home price with $75,000 at a below-the-market interest rate of 3.79%.

As a result, you're paying less interest each month. This translates to lower monthly mortgage costs, and therefore more of your money stays in your pocket each month.

City First Homes is a shared-appreciation program, and you share a portion of appreciation at time of sale, which goes as a grant to the next buyer to keep the home "permanently affordable."  Yet you will be paying less each month for the same home, and these savings can add up significantly over time.