Million Dollar Journey

Questrade Democratic Pricing - 1 cent per share, $4.95 min / $9.95 max

Building Wealth through Saving and Investing

Welcome to Million Dollar Journey! If you're new here, you can learn about me, read our user guide, and even follow my net worth updates. A great place to start reading is with the popular articles located in the right side bar. If you would like to join thousands of others and keep up with the free daily updates, you can subscribe to the RSS feed via reader or E-mail.

On your way out, make sure to check out the exclusive Million Dollar Journey Freebies and Deals.

Monthly Mortgage Payment Multiplier





Here is a handy little table that I found in the book “Personal Finance for Canadians for Dummies” for calculating monthly mortgage payments using a simple multiplier.

Interest Rate 15-Year Amortization 25-Year Amortization
5.0% 7.88 5.82
5.5% 8.14 6.1
6.0% 8.4 6.4
6.5% 8.66 6.7
7.0% 8.93 7.00
7.5% 9.21 7.32
8.0% 9.48 7.63
8.5% 9.76 7.95
9.0% 10.05 8.27
9.5% 10.33 8.61
10.0% 10.62 8.94
10.5% 10.92 9.29
11.0% 11.21 9.62
11.5% 11.51 9.97
12.0% 11.81 10.32

How does the table work? You find the current going interest rate, then multiply your (mortgage balance/1000) by the multiplier indicated.

For example, at todays 5 year fixed rates of around 5%, a 25-year $200k mortgage would mean a monthly mortgage payment of approximately $200k/1000 x 5.82 = $1164/month. This is the mortgage payment only and does NOT include property/water tax, insurance and heat/light.

By looking at the chart, another useful rule of thumb is that for every 0.5% that your interest rate goes up or down, you’re going to increase/decrease your monthly payment by around $30/month.

Or, you can simply use an online calculator like the one at Dinky Town.





No Comments, Comment or Ping

Reply to “Monthly Mortgage Payment Multiplier”

Subscribe without commenting



Get the Latest

      

Money Tips Newsletter

Premium Sponsors



Recent Comments

  • nobleea: Cool Koshur, That chart states 100hrs of operation on the stove per month. Who has their stove on full blast...
  • Al: Monica you can invest the money into equities that have a good cash flow pay the tax on the cash flow and then...
  • Cool Koshur: @Hamilton It is for US. Check this link with Appliance Usage Chart from Toronto Hydro...
  • Hamilton: Cool Koshur, cooking is actually a very small fraction of most households’ energy consumption:...
  • Wayne: @ David You mention after the second advance, they cut your limit. Most people don’t take cash from...
  • MS Barbour: Beginners with DB plans should be aware that you have to put in a lot of years before you get that so...
  • think big: A couple comments on the “green” aspect… 1) Think cradle-to-grave. While you’re...
  • John: The BMO World Elite MC is my choice. Booking travel through their site is pretty easy and the insurance...
  • Scott: I know this post is super old, but regarding cable: If you have internet (who doesn’t?) check out...
  • FrugalTrader: That is correct, the tax deduction would not be allowed.
 css.php