<\/p>\n
Curious to see what people prefer out of the following two scenarios:<\/p>\n
Scenario 1:$1,000,000 mortgage<\/strong> amortized over 25 years with 5 year term at 2.00%<\/em><\/strong> interest rate Monthly Payment is $4,234 and total cost after interest over the amortization period is $1,270,353<\/strong><\/p>\n Scenario 2:$728,000 mortgage<\/strong> amortized over 25 years with 5 year term at 5.00%<\/em><\/strong> interest rate Monthly Payment is $4,234 and total cost after interest over the amortization period is $1,270,225<\/strong><\/p>\n Assuming no prepayments, you will pay the same amount after 25 years under both scenarios. The only difference is you will need a larger down payment for scenario 1.<\/p>\n Personally, I would much rather have scenario 2 as I would pre-pay my mortgage as much as possible. However, I know people who would rather pick scenario 1 and use their excess savings to invest in the markets or other forms of investments given cost of borrowing is only 2.00%.<\/p>\n Also, in scenario 1, once you pay the high price you are on the hook for it. Interest rates may go up which causes financial hardship. Scenario 2 has lower prices to begin with and there is a chance interest rates will go down which would be advantageous to you.<\/p>\n Which one are you?<\/p>\n<\/p><\/div>\n submitted by \/u\/mrsinister1103 <\/a> Curious to see what people prefer out of the following two scenarios: Scenario 1:$1,000,000 mortgage amortized over 25 years with 5 year term at 2.00% interest rate Monthly Payment is $4,234 and total cost...<\/p>\n","protected":false},"author":1,"featured_media":24127,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":[],"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[10],"tags":[],"_links":{"self":[{"href":"https:\/\/blog.andrewwbradley.ca\/index.php\/wp-json\/wp\/v2\/posts\/26001"}],"collection":[{"href":"https:\/\/blog.andrewwbradley.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.andrewwbradley.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.andrewwbradley.ca\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.andrewwbradley.ca\/index.php\/wp-json\/wp\/v2\/comments?post=26001"}],"version-history":[{"count":0,"href":"https:\/\/blog.andrewwbradley.ca\/index.php\/wp-json\/wp\/v2\/posts\/26001\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.andrewwbradley.ca\/index.php\/wp-json\/wp\/v2\/media\/24127"}],"wp:attachment":[{"href":"https:\/\/blog.andrewwbradley.ca\/index.php\/wp-json\/wp\/v2\/media?parent=26001"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.andrewwbradley.ca\/index.php\/wp-json\/wp\/v2\/categories?post=26001"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.andrewwbradley.ca\/index.php\/wp-json\/wp\/v2\/tags?post=26001"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
[link]<\/a><\/span> [comments]<\/a><\/span>Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"