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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 Rate15-Year Amortization25-Year Amortization
5.0%7.885.82
5.5%8.146.1
6.0%8.46.4
6.5%8.666.7
7.0%8.937.00
7.5%9.217.32
8.0%9.487.63
8.5%9.767.95
9.0%10.058.27
9.5%10.338.61
10.0%10.628.94
10.5%10.929.29
11.0%11.219.62
11.5%11.519.97
12.0%11.8110.32

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.

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FT About the author: FT is the founder and editor of Million Dollar Journey (est. 2006). Through various financial strategies outlined on this site, he grew his net worth from $200,000 in 2006 to $1,000,000 by 2014. You can read more about him here.

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