5 to 10 basis points

This amounts to .5 to .10 of a percentage point as a basis point is essentially 1/100th of a percentage point. I bring this up as consumers will shop their mortgage business and leave an existing relationship at the last minute for perceived deal of 5 one hundreds of a percent.

So here is some mortgage math for you. Let’s take the average current mortgage balance of 400,000, taken over 5 year term and 25 year amortization. At current 5 year fixed rates of 2.09% that would give you a mortgage payment of 1,711 per month. There are also some no frills quick close deals at 1.99% giving you a monthly payment of 1,692 per month. This amounts to a savings of $19 a month or $1,140 over the 5 years. Or $5 per hundred thousand mortgage balance.

Remember not all products are created equal. Some products are locked in closed for the term, meaning that the only way to break it is with the power of sale. Some have reduced pre payment privileges or no portability features. Make sure that you look at everything as there is more to consider than just the rate.

Today I am thankful for a warm and refreshing run this morning before it got too hot, a delicious burger delivered right to my door yesterday and that my dog recovered quickly from overheating on Friday night.

“Do not let Sunday be taken from you. If your soul has no Sunday, it becomes an orphan.” – Albert Schweitzer

I look forward to hearing from you in regard to your mortgage needs.

Patrick

p.s- You can click on this link to start the process whenever you are ready. Schedule your meeting with me here.

p.s.s- I should tell you that I am licensed in Nova Scotia, Ontario(M18001555) & in British Columbia(BCFSA #504098).

p.s.s.s You can download my new mortgage app here