Comparing Mortgage Options with the Canadian Mortgage App
Are you considering two different mortgage options, and you’re not sure which one to go with? Let’s look at how the Canadian Mortgage App makes comparing mortgage options much more accessible.
Let’s say you’re considering two mortgage options—one with a rate of 5.49% and a second with a rate of 5.59%. Of course, choosing a mortgage is about more than just the interest rates. However, if you want to look at it from a number perspective, the great thing about the Canadian Mortgage App is that you can.
With the side-by-side compare feature, you can compare the two interest rates over the term of your mortgage to see how much interest you’ll pay for each of them. The Canadian Mortgage App makes things even more convenient by clearly spelling out how much interest you’ll save from one mortgage option to the next.
Insured vs. Conventional
Another thing you might be considering is 10% down vs. 20% down. If you have enough to make a 20% down payment, you can put 20% down or go with a lesser down payment of 10%.
Why would you go with a lesser down payment of 10%? Maybe your money is invested in the stock markets, and your investments are down. Perhaps you feel better with more emergency savings in the bank.
Whatever the reason, the Canadian Mortgage App makes it easy to compare the two options with its side-by-side feature. You can see how much you’ll save in interest by putting 20% down. When you put less than 20% down, you’re required to pay mortgage default insurance. The Canadian Mortgage App even factors that in.
25 vs. 30 Year Amortization
If you’re putting at least 20% down, you can choose a 25 or 30-year amortization. Amortization is a fancy way of saying the time it takes to pay your mortgage in full if you make the minimum payment.
Why would you go with a 30-year amortization instead of a 25-year amortization? It makes it easier to budget from a cash flow standpoint. The payments for a 30-year amortization will almost always be more affordable than a 25-year amortization. However, there is a downside. You’ll end up paying more interest over the life of your mortgage since you’re stretching your mortgage out an extra five years. The mortgage rate for a 30-year amortization is also usually about 0.10% higher than a 25-year.
The great thing about the Canadian Mortgage App is that you can compare the 25-year and 30-year amortization to see precisely how much more interest going with a 30-year amortization will cost you and whether it’s worth it.
How the Canadian Mortgage App Can Help
The Canadian Mortgage App is great for comparing mortgage options.
With the side by side feature of the Canadian Mortgage App, you can easily compare two or more mortgage options from many different angles and see which mortgage option makes the most sense for you. Here’s a training video from Ben where he goes over this handy feature.
What are you waiting for? Download the Canadian Mortgage App today to try it out.