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How much money do I have to pay to break my 280,000 mortgage using the Interest Rate Differential formula?

 
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anonymous


I have a 3 years left in my 5 years term with 4.69% interest rate and 25 years amortization.
0     In Mortgage Cont.20

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    Q. How to compute interest differential?


    "Rate differential=posted current rate - rate of mortgage you are currently paying...."



    The formula is comprised of three variables: OSB * (rate differential/12) *remaining number of months to the term OSB=Oustanding balance at the time of paying off mortgage. Rate differential=Posted current rate - rate of mortgage you are currently paying.

    This answer closely relates to:
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      • How to figure out the interest rate differential on a mortgage?
    • Formula to break mortgage
      • How can i break my current mortgage for a better rate canada?
      • How does interest rate differential work?

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