 鲜花( 0)  鸡蛋( 0)
|
Let's say a customer wants to transfer $400,000 mortgage to CIBC. He has 2 options. 5 ?, }3 m* ?- D v W
1. 3-year closed mortage with 3.3% and 3% cash back.' s! z* }" q4 ?' V& l( s" ]7 F; a
2. 5-year closed mortgage with posted rate 5.39% and 5% cash back
0 s( J: S& Q5 V
( j( B/ |2 K5 H! e0 E. QOption 1. After 3% cash back, your mortgage amount will become $400,000*0.97=$388,000 with 3.3% interest
9 c2 s. V* I1 z2 E. J- I) sIf you want to payoff your mortgage in 25 years. Monthly PMT $1896.44. The remaining balance is $356,393 after 3 years.
0 ~& t- ]9 C8 l: ^. Y4 b0 s
: i) t$ T4 T! L; E9 y- fOption 2. After 5% cash back, your mortgage amount will become% k4 B- Z7 K, A- @* b) R( D
$400,000*0.95=$380,000 with 5.39% interest.
- }/ h1 w0 c" f9 o5 D- iIf you want to payoff your mortagge in 25years. Monthly PMT 2295.21 The remaining balance will be $356,351.50 after 3 years2 f e V7 O1 z% ~ U% l+ [
$ e( c. D+ N7 k& X' o! C% H
Basically, for the above options, after 3 years, the mortgage remaining balance is similiar. r0 v1 a- ^9 |/ s5 d/ B
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) |
|