What Mortgage is Right for You?

Thursday Sep 08th, 2022


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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