.png)
️= 
Most mortgage amortization periods are 20-25 years.
This is the amount of time your lender will give you to pay back your mortgage loan in full.
The reason I say that time ️ = money is because for the length of that amortization period, you will be charged interest on your mortgage loan balance. The longer the loan payment schedule, the more interest will accrue over time.
️ = money is because for the length of that amortization period, you will be charged interest on your mortgage loan balance. The longer the loan payment schedule, the more interest will accrue over time.For example:
Mortgage Amount = $800,000
Interest Rate = 5.690%
AMORTIZATION: 25 YEARS
TOTAL INTEREST COST: $691,589.34*
Approx. Monthly Payment: $4,971.98
AMORTIZATION: 20 YEARS
TOTAL INTEREST COST: $534,191.67*
Approx. Monthly Payment: $5,559.15
Long story short - if you can afford an increase in your payments on a monthly basis, you can potentially save yourself hundreds of thousands of dollars by amortizing your mortgage loan for a shorter amount of time!
Always speak with a mortgage professional for the best advice! If you're looking for one, reach out and I'd be happy to connect you!
#wordoftheweek #realestateterms #realestatedefinitions #mortgage #amortizationperiod #kelowna #kelownarealestate #realestate #buyinkelowna #sellinkelowna #okanagan #kelownarealtor #kelownasmallbusiness #kelownatourism #okanagan #westkelowna #livedowntownkelowna #liveinkelowna #lovekelowna
*these interest costs are calculated at 5.690% for the entirety of the loan - typically your interest rate will vary during your amortization period. If you have questions about this, please DM me.
