Part:1
150,000$
http://beta.realtor.ca/propertyDetails.aspx?PropertyId=14457156
BMO
Mortgage rate over 2 years
Interest 3.290 percent with BMO
Paying monthly 2 year fixed rate
Monthly payment : 6,448.57$
Interest cost: 4,776.80$
Balance at the end if the term 11.13$
Interest cost at amortization:4,776.83$
Vancity
Amortization period: 10 years
Paying: monthly: 1,461.60$
3 year (fixed)
Total payments: 175,392.47$
Total interest: 25,392.47$
Rate: 3.19 percent
What stuck out to me:
What stuck out to me is how much more the interest was with Vancity then BMO. It's better to do it as quickly and shortly as possible because the longer you are paying the more interest you will pay. The bank that I would go to for buying my house would be definetly BMO.
Part:2
400,000$
Vancity
Mortgage amount:400000$
Amortilization period: 10 years
Paying: monthly: 3,869.82$
5 year fixed
Total payments:464,378.37$
Interest: 64,378.37
Rate: 3.04 percent
BMO
Amortilization period:5 years
5 year (fixed)
Interest rate: 4.990 percent
Monthly payment: 7,537$
Interest cost for term: 52,292.78$
Balance at end:54.78$
Interest cost at amortization:52,293.01$
What stuck out to me:
Is how different rates and plans can be at banks. I also noticed that the longer your plan is with amortization the higher the interest you will pay. In this case for buying a 400,000$ house would be BMO still because the plan was better and it's over 10,000$ cheaper then Vancity.
Part:3
600,000$
BMO
Amortization period: 10 years
10 year (fixed)
Interest rate: 6.750 percent
Monthly payment: 6,860.90
Interest cost for term: 223,481.12$
Interest cost at amortization: 223,482.09
Vancity
10 years(fixed)
Amortization: 10 years
Monthly payment: 6,157.75$
Total interest:138,929.55$
Interest rate:4.29 percent
Total payment: 738,929.55$
What stuck out to me:
Is when you are buying a house that costs more it's very important to weigh out your options with different banks because the difference between BMO and Vancity was about 100,000$ which is crazy. I learned that when you have a mortgage carefully plan and think through so you are not spending more money.
