http://reversemortgage.info-junction.net/what-will-be-your-monthly-payment-under-each-option/ What is Reverse Mortgage, How does reverse mortgage work, Advantages & Disadvantages of reverse mortgage. Mon, 30 Jan 2012 01:01:00 +0000 hourly 1 http://wordpress.org/?v=3.0.1 http://reversemortgage.info-junction.net/what-will-be-your-monthly-payment-under-each-option/comment-page-1/#comment-15470 LadyFINE Wed, 10 Feb 2010 09:28:56 +0000 http://reversemortgage.info-junction.net/what-will-be-your-monthly-payment-under-each-option/#comment-15470 I used this mortgage calculator to work out these numbers: The 1 year rate of 2.75% would give you a monthly payment of $1760. The 5 year rate of 4.30% would give you a monthly payment of $2015. As to which one you should take, it's going to depend on your monthly budget and your own personal risk tolerance. The 1 year rate is very attractive, and the Bank of Canada has reiterated its commitment to leaving the Prime Rate where it is until June 2010, which suggests (although doesn't guarantee, since fixed mortgage rates are actually tied to the Bond Market, not the BoC prime rate) that rates should hopefully still be relatively low this time next year. But if you aren't comfortable with "hopefully"s and "probably"s, you should perhaps consider taking a longer term. Again, it's a very personal decision. I used this mortgage calculator to work out these numbers:
The 1 year rate of 2.75% would give you a monthly payment of $1760.
The 5 year rate of 4.30% would give you a monthly payment of $2015.
As to which one you should take, it’s going to depend on your monthly budget and your own personal risk tolerance. The 1 year rate is very attractive, and the Bank of Canada has reiterated its commitment to leaving the Prime Rate where it is until June 2010, which suggests (although doesn’t guarantee, since fixed mortgage rates are actually tied to the Bond Market, not the BoC prime rate) that rates should hopefully still be relatively low this time next year. But if you aren’t comfortable with “hopefully”s and “probably”s, you should perhaps consider taking a longer term. Again, it’s a very personal decision.

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