 鲜花( 0)  鸡蛋( 0)
|
Let's say a customer wants to transfer $400,000 mortgage to CIBC. He has 2 options.
0 y R4 p- ~3 j& }- s- W- p4 e3 h1. 3-year closed mortage with 3.3% and 3% cash back.
0 P' C2 r H4 p5 u2. 5-year closed mortgage with posted rate 5.39% and 5% cash back" o+ j1 }: z' u# r. U: q
7 K8 B6 f# e7 yOption 1. After 3% cash back, your mortgage amount will become $400,000*0.97=$388,000 with 3.3% interest# {! Q# N% q6 l- o# w B% @
If you want to payoff your mortgage in 25 years. Monthly PMT $1896.44. The remaining balance is $356,393 after 3 years.
* \% x7 @' P' y) w% A% @$ k. {- G! T
Option 2. After 5% cash back, your mortgage amount will become; [) U. c, I* h# {/ C
$400,000*0.95=$380,000 with 5.39% interest.
* d; x2 T6 Q& C! v! u$ RIf you want to payoff your mortagge in 25years. Monthly PMT 2295.21 The remaining balance will be $356,351.50 after 3 years
- {1 }! ?1 u3 v1 |; j
! [+ H( I! z* @ q" I4 M4 k. {Basically, for the above options, after 3 years, the mortgage remaining balance is similiar.) k! `7 s3 E0 {- F* S5 o J$ }$ `
If you choose the 2% cash back with 3.3%, every month you save about $398.77 monthly payment for 3 years. Total roughly saving ($398.77*12*3=$14,355) |
|