12 april 2010
12 April 2010
We’ll make the variable mortgage payment systematically and do a lump sum payment every 6 months of the difference between the fixed and variable payment for as long as there is a difference.
| Mortgage and Rate | Monthly Payment | Monthly Payment |
| 5 Years Fixed rate 4.29% |
1354.65 | End of 5 years $218,720 |
| Variable Rate P-.50 Month 1 -6 – 1.75% |
1028.71 with lump sum prepayment $1997.22 | |
| Month 6 – 12 – 2.25% | 1081.84 with lump sum prepayment $1636.86 | |
| Month 12 – 18 – 2.75% | 1130.82 with lump sum prepayment $1342.98 | |
| Month 18 – 24 – 3.25% | 1186.30 with lump sum prepayment $1010.10 | |
| Month 24 – 30 – 3.75% | 1237.73 with lump sum prepayment $701.52 | |
| Month 30 – 36 – 4.25% | 1296.50 with lump sum prepayment $348.90 | |
| Month 36 – 42 – 4.50% | 1321.27 with lump sum prepayment $200.28 | |
| Month 42 – 48 – 4.75% | 1353.88 | |
| Year 5 – 4.75% | 1353.88 | End of 5 year $209,799 |
We think a savings of $8921 over 5 years speaks for itself!
Why would you pay $8921 more in interest just to secure a fixed payment?
Why don’t you reduce your Mortgage Balance Faster, taking advantage of the low Prime Rates of TODAY!
Above table is based on the latest CIBC predictions and can be used only as an example. Overnight rate and Prime are regulated by Bank of Canada and chartered banks and may differ from forecasted.