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How much interest do you actually pay?

Do you know that this is not the typically question I am asked? Which is crazy because that is what we want to know right? what will this cost me.... not what is the rate, what is the fine print, what is the amortization...... how much money does it cost me to borrow x number of dollars?

Some people just look at the interest rate but this is only half of the calculation. It is quite common for people to be tricked into a lower interest rate with a higher amortization that will actually cost them more money. Ideally we want to be paying them less money to borrow the same if that makes sense.

If you offer me 2.54% or 3.54% and ask me which mortgage I want this truly isn't enough information to determine anything....what if one of these was only for a purchase? only for mortgages over $1million? only at 30 year amortization? We need to know more to make a decision!!! the key is in having the WHOLE picture so you can make an informed decision.

There is a really good calculator on my app called “comparison” so you can put numbers into the app to see exactly what 2 mortgages look like side by side and how much they will cost you. This will help you to compare apples to apples because the amortization multiplied by the rate is what you will actually pay in interest to the bank.

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