- Amortization period
-
The number of years and months over which you
will repay this loan. The most common mortgage amortization periods are
20 years and 25 years.
Not to confuse with the term of your loan, which is the duration of the loan
agreement you signed with your financial institution and that has to be renewed
regularly. Terms are generally for 1 to 5 years.
- Frequency of payments
-
By choosing an accelerated payment frequency, you can reduce your amortization
period and save thousands of dollars in interest in the long run. For example,
the accelerated bi-weekly payment allows you to pay half of your monthly
payment every two weeks. You will therefore make 26 payments a year, the
equivalent of one extra monthly payment a year.
- Frequency of prepayments
-
The frequency under which you will make prepayments on your mortgage.
The options are none, one time payment, weekly, bi-weekly, semi-monthly,
monthly and yearly.
- Interest rate
- Annual interest rate for this mortgage.
- Interest savings
-
Total amount of interest you would save by making prepayments on your mortgage
until the end of your amortization period. This assumes that the
conditions of your loan (e.g. interest rate, amortization period, etc.) will
not change for the whole period.
- Mortgage amount
-
This is the amount you expect to borrow from your
financial institution. It may include the purchase price of your
home plus the mortgage loan insurance minus the down payment.
- Mortgage payment
-
The amount you will pay per period, which include
a portion for the principal payment and a portion for the interest payment.
- Prepayment amount
-
Amount that you will prepay on your mortgage. This amount will be
applied to the mortgage principal balance, at a frequency of prepayments
you determined.
- Start with payment
-
This is the payment number that your prepayments will begin with. For
a one time payment, this is the payment number that the single prepayment
will be included in. All prepayments of principal are assumed to be received
by your lender in time to be included in the following month's interest
calculation.
- Total interest
-
Total of all interest paid over the full term of the mortgage, assuming
that the conditions of your loan (e.g. interest rate, amortization
period, etc.) will not change for the whole period. This
total interest amount also assumes that there are no prepayments of principal.
- Total payments
-
Total of all payments over the full term of the mortgage, assuming that
the conditions of your loan (e.g. interest rate, amortization period,
etc.) will not change for the whole period. This total
payment amount also assumes that there are no prepayments of principal.
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