The Importance of Rate

Home owners and prospective purchaser shouldn’t neglect the importance of rate over the term of your mortgage. The stronger your credit the better your negotiating power. If you are a bank customer and the only business they do with you is your mortgage they most likely will try to charge you a rate close to their posted rate.

The tables below illustrate the costs to you if you don’t ensure yourself the best rate for your given circumstances. One more reason to use the services of a mortgage broker such as Verico Accede Financial Inc.

In our examples we use a $200,000.00 Mortgage amortized over 25 years.

Conclusions:

1. In all cases the monthly payment was less varying from 14.4 % to 10.3 % averaging 12.0% over the 3 periods.

2. In every case although the monthly payment was less the amount of principal repaid over the period greater using the Verico Best Rate. and

3. You paid significantly less interest.

In summary ensuring you get the Best Rate

Lowers your Monthly payments,

Costs you less in Interest charges,

and Pays down the Principal faster.

Given the saving realized from ensuring you have the Best Rate for your circumstances we wanted to find out the effect on the amortization schedule of paying the POSTED RATE MONTHLY PAYMENT while getting the BEST RATE

On the 1 Year Term the amortization schedule was shortened by 4 Yrs. 6 months

For the 3 Year Term the amortization schedule was shortened by 3 Yrs. 7 months and

For the 5 Year Term the amortization schedule was shortened by 4 Yrs. 2 months.

If getting the Best Rate for your particular circumstances is important to you then contact us a today.