 鲜花( 0)  鸡蛋( 0)
|
Let's say a customer wants to transfer $400,000 mortgage to CIBC. He has 2 options. 7 u6 j( J5 \0 W$ E5 o
1. 3-year closed mortage with 3.3% and 3% cash back.! S1 ^0 ~/ w. O
2. 5-year closed mortgage with posted rate 5.39% and 5% cash back
2 C. W* a6 V4 H% X( H0 m; l w, j
6 S; Q# |& M$ E: yOption 1. After 3% cash back, your mortgage amount will become $400,000*0.97=$388,000 with 3.3% interest
& O& t+ _% H8 e% M6 UIf you want to payoff your mortgage in 25 years. Monthly PMT $1896.44. The remaining balance is $356,393 after 3 years.
% c! _# ~/ `5 ~" T& u3 I" H, V( D2 y3 x1 U1 r
Option 2. After 5% cash back, your mortgage amount will become5 o2 t& J0 f$ y* U `' Z4 Y& M2 V {
$400,000*0.95=$380,000 with 5.39% interest.; k# e' G! k; q6 r- z: ^8 u
If you want to payoff your mortagge in 25years. Monthly PMT 2295.21 The remaining balance will be $356,351.50 after 3 years
0 X' ^6 d# z3 T5 K+ g' Z6 [+ N3 M5 z S: o; c4 Q
Basically, for the above options, after 3 years, the mortgage remaining balance is similiar. r, @- l M" j& Q& H' P3 f. N0 T$ 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) |
|