mortgage payment increase?
my $12 mortgage payment increase per $100,000 with each .25 per cent raise is incorrect. 4 increases at .25% = equal 1% per 100,000 = that’s 1,000 a year and that means its not a $48 increase but an $83 increase for every $100,000
Well, dear listener thanks for sharing, but that is true only if you pay it off in one year. With a 25-year amortization the increase in payment is approx. $48 per 1% increase per $100,000.
However, with an average mortgage of $600,000 that comes to close to a $300 increase and if rates (like in the US) go up by 3% then that $600,000 mortgage payment increases by almost $900 even with accounting for amortization. And the $1 million mortgages? Is $1500 more per month.
