Team: Candid Real Estate Group
Brokerage: RE/MAX 2000 Realty
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Calculators · Owning and renewing
Payment, interest and balance at the end of each term, so a lower rate with a shorter term is judged on the same footing as the alternatives.
Least interest over the first 3 years
Option B
$65,962 of interest at 4.59% on a 3-year term. Terms differ, so the comparison is made over the shortest one; what happens at each renewal is the real unknown.
| Option | Payment | Interest over term | Principal paid | Balance at renewal | Features |
|---|---|---|---|---|---|
| Option A4.89% · 5-yr fixed · 25-yr amort. | $2,877 | $114,376 | $58,231 | $441,769 | 20% prepay, portable |
| Option B4.59% · 3-yr fixed · 25-yr amort. | $2,792 | $65,962 | $34,565 | $465,435 | 15% prepay, portable |
Interest over the first 3 years
Rate is one of five things to compare
These calculators are educational illustrations, not advice and not an offer of credit. Figures are estimates from the inputs you enter and simplified rules; your lender's calculation, rates, fees, taxes and qualification will differ and are confirmed only by a licensed mortgage professional, lawyer or accountant. Mervin Truong is a licensed real estate professional, not a mortgage broker or financial advisor.
From estimate to plan
A calculator describes a scenario. I'll read it against what's selling now and introduce a licensed mortgage professional to confirm what you qualify for.