The manner the question is posted looks like this is a homework for school. there are many calculators avalable to answer this question. Visit my website www.victorcatalan.ca and plug in the numbers so you can get the answer. You need to understand how this question will be translated to the calculator to get the answer.

Hello Branislav, When a bank denies a deal for the 5 year mortgage there is little chance that they will approve a 1 year term. The qualifying income needed for a 1 year term is actually higher than a 5 year term. 5 year mortgages are qualified on the 5 year rate any shorter term is qualified on the bank of Canada rate of 5.19%. If it is a matter of qualifying for the mortgage then the best bet is to look to another lender and ask for an exception to the qualifying ratios. As a Mortgage Agent I can check with the 25 lenders that I deal with to see which Lender will approve the deal if you like. Please let me know if I can help. Contact me at any time. Abraham Niyazi - Mortgage Agent - Lic#M08010640 - Centum One FInancial Corp - Lic 10758. Cell: 416-993-4082 Toll Free: 1-866-728-3708 http://www.centum.ca/abraham_niyazi/ I deal with 25 Banks/Lenders and can do mortgages across Canada except Quebec." 01:20pm Feb 8, 2011

Hello Todd, Before porting, see if the current rates are lower than your previous rate, If current is better, it might be worthwhile to break the current contract and pay the penalty instead of porting. In the end you want to have a better rate. Fixed rates are low at the moment (9/11/2011) and you may want to review it again.

Powered by

My mortgage term is 25 years. for the first 5 years i've payed what i belive is mostly interest. now, when i refinance do i also have to pay most of the interest within the first 5 years?

you will just need to refinace your current principal balance. Get a payoff, what the current payoff is will be what you refinance. There is not such thing as back interest, unless you took one of those interest only freaky loans. Or a neg am loan. Just get your payoff. Im sure you are fine.

Powered by

P + i = m (principal + interest = mortgage payment) directions: for each of the following examples, calculate your approximate mortgage payment and then calculate your approximate property tax payment the first year (multiply the purchase price by 1% or 0.01). show your work for full credit and put a box around your final answers. 2.purchase price: $200,000 down payment: 10% interest rate: 6.5% fixed term: 25 years lost please help me!

1. 200000 divided by 10 = down payment: $20,000(or 10% of purchase price) 2. 200000 divided by 100 = 1% of purchase price(or 2,000) then muliply that by 6.5 for intrest which = $13,000 for first year.

Powered by

The traditional 25 year mortgage term has been in existance since the late 50's early 60's. as people are living longer and having far better working life spans, as health is concerned, why not offer 30-35 year mortgages?. it just seems the simplest way around this whole problem. i agree that more interest would be made payable, but surely this is a fact of today's modern life. your comments would be appreciated, particulary from 1st time buyers.

I apologize upfront for being blunt, but borrowers need to wake up. They need to stop thinking about rate and starting thinking about term, retirement and dreams. For example Say your 35. you have 3 offers on the table. 100k mortgage, 5%, 30 yr fixed 537/mo pmt 100k mortgage, 6%, 20 yr fixed 717/mo pmt 100k mortgage, 7%, 15 yr fixed 899/mo pmt which is the best deal? you think the 30 year is? It's not, with the 30 year your paying over 193k for finance charges, the 20 year, over 171k, for the 15, paying over 161k. Pretty big difference huh? Here's the other issue, what if you want to retire at 60, thus at a fixed income, you now still have a fixed mortgage payment for the next five years. But with the 15 or 20, the latest you pay the mortgage off is when your 55, in your peak earning years, you can take more vacations, or put more away towards retirement, you have more financial freedom and hopefully you have an asset that's increased by 20%. Do you still want a mortgage payment when you retire or do you want to ENJOY being retired, knowing you can consolidate your home, pay in cash and not worry about a mortgage again, if that's what you want. Very few here talk about term and not enough borrowers think about it, there too concerned with right now, and rightfully so, but you only waste money by not planning for the future as well. A good mortgage professional can address your needs and concerns now and help you achieve your goals and dreams of the future, IT IS POSSIBLE!! I hope this helps

Powered by

My second home is in arrears of £6k and the mortgage is about £830 per month normal and £620 interest only. should i pay off the outstanding money owed then rent it out on the interest only mortgage? what would i have to pay at the end of an interest only mortgage of 25 years? need to know is i have tried to sell the house but it aint budging.

Try and pay the arrears off and then if you can rent it out, rent it for a little above the Interest Only payment as that will give you some money for repairs that you will have to take care of. At the end of the term you will owe the amount that you started the Interest Only payments with as you will not be making any payment towards the amount you borrowed.

Powered by

You take out a mortgage today of $350,000 with a 25-year amortization period, a 5-year term, and a 6.25% (annual) posted mortgage interest rate. suppose four years from today, you decide to refinance your mortgage at a 5.50% (annual) mortgage interest rate. also, you would like to increase your payment frequency from monthly to weekly. (assume your mortgage payments are made at the end of each month or week). (a) what is your original monthly payment on the mortgage? (5 marks) (b) what is the remaining balance on the mortgage after 4 years? (c) what will be your weekly payment on the refinanced mortgage? (there are 52 weeks in a year. (d) are you paying more or less on a monthly basis once you refinance your mortgage if your discount rate is 8%, compounded annually? (assume that there 4.3333 weeks per month)

5 years from now YOU will not find a 5.5% annual rzte except in your dreams . Do your homework else where please.

Powered by

Mortgage is $51,800. interest rate is 10%. term of loan is 25 years. annual taxes is $570. annual insurance is $145.

Mortgage monthly payment $470.71 Insurance monthly $12.08 Taxes monthly $47.50 Montly Amount $530.29

Powered by

We are considering refinancing our mortgage for an interest rate that is 2% lower than our current one. the mortgage company will allow us to refinance for either 300 months (25-years), or for the remaining term of our original 30-year loan (324 months). refinancing for 25-years will shave 2 years off the back of our mortgage and save us a little each month. refinancing for the remaining term will save us more each month, which would be really nice. which option do you think is best? the mortgage is a fixed rate. we do not have a car note, but we do have a good amount of student loan debt.

I have moved many times - many mortgages. This is what I do. I take the 30 year loan - every time. The trick is: To make payments on your own towards the principal. Why: You never know when you are going to fall on hard times. The lower payment may be your salvation. In good times - make extra payments towards principal by writing an extra check with the words "payment towards principal" Also, don't do this unless you have all your credit card debt paid in full each month. And I would rather see you pay off any car loans first. Also make sure that you have at least 6 months worth of living expenses in a savings before making extra payments towards anything. You can have a goal to pay off that home in 20 years. You don't have to study it to death - just start paying off debt and before you know it you will be living debt free. Do not dare let the bank trick you into adjustable rate ARMS, options, interest only, etc. Do fixed rate only. And before you sign ask if there are any pre-payment penalties. Pre-payment penalties come with the arms - but just make sure. Some banks are still trying to scam people to death. /

Powered by

Out of interest, i did a quick mortgage calculation with an online mortgage calculator. my specifications were as follows - home value: $ 285,000 loan amount:$ 200,000 interest rate:5% loan term:30 years property tax:1.25% pmi:0.5% i only adjusted the home value and loan value, since i have no idea what the 'going rate' is for the others. i was stunned to find that in the results, the total payment of the life of the mortgage would be $493,386.57. the total tax paid would be $106,875.00, and the total interest paid would be $186,511.57. the total of these two numbers is $293,386.57, or $8386.57 more than the selling price of the home? never one for percentages, but that sounds like the neighborhood of 110% of the home value. am i missing something here, or (not to be crude) but are buyers literally getting ****** every which way? and what to do? put down a gigantic deposit and buy a cheaper place? - presumably its not that much for the life of the mortgage since you are paying x percent of the balance, not the total?

The reason that the total interest paid is so high is because for at least 20 years the majority of your monthly payment is applied to paying the interest. By paying off the mortgage faster, you can save a HUGE amount in interest. Based on the figures you provided :If you had a 20 year mortgage instead of a 30 year you would pay a total of $116,778.75 in interest. That would save you $69,732.82 in interest expenses. Note: When comparing loan figures the real estate property tax paid is a tax you have to pay regardless of whether you have a mortgage or not.

Powered by

Exactly ten years ago you entered into a $100,000 20-year fixed rate mortgage to finance an investment property. the terms of the mortgage were 6% p.a. compounding monthly with monthly repayments. (a)what is the amount of your monthly repayments? (b)for tax purposes, how much interest did you pay to the lender over the last year? (c)now suppose that you decide to pay half the monthly repayment that you computed in (a) every two weeks. how long will it take before the mortgage is paid off? (d)a colleague tells you that he prefers shorter-term mortgages (10-15 years) to longer-term mortgages (25-30 years). he says this is because you end up paying a lot more interest to the bank over 30 years than over only ten years. is this true? does this mean that short-term mortgages are better value than long-term mortgages?

a. $716.43 b. $3.56 c. Laziness kicking in. d. It's true that you end up paying more interest total. But you do get a lot more time to pay it off, so the monthly payments are smaller. It's a tradeoff.