What Mortgage is Right for You?

Thursday Sep 08th, 2022

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How to determine the best mortgage for you.

When doing research to determine what one can afford, planning on interest rate rises in the future should be a consideration.

Although interest rate rises affect home buying power, it may not be as much as many think.

A mortgage of $400,000.00 with a 25-year amortization :

    - Monthly payment at 4% = $2,104.00

    - Monthly payment at 5% = $2,326.00

Also, lenders use several parameters to determine mortgage rates like:

    - Current prime rate

    - The amortization period

    - Type of interest rate (fixed or variable)

    - Credit history

Another way of looking at things is to consider those who purchased during the pandemic when their rates were < 2.5%.

When they go to renew their rate will be higher, but so will their property value.

Also, for pre-construction homes and condos, owners often earn equity before they even take possession. 

 

 


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