How Much Will My Payment Go Down If I Refinance

How Much Will My Payment Go Down If I Refinance – Why is the principal portion of a TD Bank mortgage payment moving up and down in a sawtooth wave? (Why interest payments on delinquent annuities are not monotonous)

The monthly payment (a fixed-rate mortgage) is predictable and constant, but the portion of each payment that goes toward interest is not monotonous. I expected it to start high and then taper off. But it jumps up and down…why?

How Much Will My Payment Go Down If I Refinance

$1 million loan, 25-year amortization, monthly repayments, fixed quoted interest rate of 5.34%. Screenshot from August 14, 2022.

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It was immediately suggested that different exchange rates would rise and fall with the length of the months in the calendar (in 2022). I’m curious what specific fraction they use to estimate the length of a year.

This is the same as if we established the equivalent daily rate and then added each day of the month.

Dollars at the beginning of the year, with no payments, and multiplying the balance at the end of each month by that month’s interest rate, then looking at the final balance a year later, you would have accumulated 5.41% in additional debt:

I then tried to use the equation above to determine which parts of the year the TD calculator was used for.

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We see that the interest rate in month two is higher than in month one, and we see that the effective interest rate in month three, C, is the same as A. Let’s ignore for a moment the fact that monetary values ​​are rounded.

We can plug the resulting interest rate into our annual formula to determine the index to apply to the EAR, called

Therefore, the first cycle might correspond to a 29.9845-day cycle in a 365-day year, or to a 30-day cycle in a year (365.19 days).

If I do the same thing for data point B, we get a 30.9818 day period in a 365 day year, or a 31 day period in a 365.21 day year.

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The first payment shouldn’t have much rounding error, so if you factor in rounding, the true value of the first payment before rounding (either up or down) is probably between $4,338.61 and $4,338.63 between.

I can’t make it go beyond 30 days, so the rounding has to be done elsewhere, probably in the EAR calculation.

I’m pretty sure this is because they include the fact that the month lengths are not the same. This is hidden because they don’t actually include the relevant dates in the results or even mention that the table will be slightly different depending on the actual date. But here is the table with the months and their lengths inserted, along with a new column that divides the interest by the number of days in the month.

Notice how the interest amount changes with the length of the month, especially the big drop in February. Of course, since your repayments are fixed, the principal is inversely related to the interest rate. As you’d expect as you pay off your balance, daily interest decreases steadily.

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You must be logged in to answer this question. Not the answer you’re looking for? Browse other questions tagged mortgagecanadacalculationamortization. My post yesterday about house prices got some legitimate pushback. After all, it’s not the price of the house that matters, but the monthly mortgage payment. So if interest rates come down, maybe that can make up for the increase in home prices?

Roughly speaking, the average home price in 1975 was about $120,000 (in 2017 dollars) and the mortgage interest rate was about 9%. This results in monthly payments of approximately $1,000.

In 2017, the average house price was about US$200,000, and the mortgage interest rate was about 4%. This equates to a monthly payment of approximately $1,000. As a result, Millennials are no worse off than their parents.

But here are some caveats. First, inflation has been much higher in the past. The picture above shows

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Monthly payments are actually about the same as they were in 1975. However, at that point you can continue to express your lifestyle for a while, knowing that inflation will steadily erode the monthly payment. Within a few years, your monthly payments could equal $500.

You can’t do that now. Inflation is so low (and likely to stay low) that your payments won’t be affected that much at all. That $1,000 nut will remain close to $1,000 over the life of the loan. A monthly payment of $1,000 would look like this:

Second, payments are not dependent on interest rates. When house prices nearly doubled, so did the payments. Today, young people must save nearly twice as much cash as their parents for a down payment.

I don’t really know the best way to calculate this. Of course, things vary from place to place, but in general: (a) Millennials need nearly double the payments their parents made, and (b) they can’t expect their loan payments to be as much as a percentage of their income anytime soon. Small portion. This doesn’t show up in simple numbers for the initial monthly payment, but it’s still very real. No matter how you look at it, buying a home is harder today than it was in 1975.

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Investigative journalism? We’re a nonprofit (so we get tax deductions) and reader support makes up about two-thirds of our budget. Deputy Prime Minister Lawrence said the government would monitor the market and offer another discount on property taxes next year if necessary.

SINGAPORE: Some homeowners will pay less in property tax when the annual value (AV) band for owner-occupied properties increases next year.

From January 1, 2025, the AV band minimum threshold will increase from S$8,000 (US$5,900) to S$12,000. Adjust the frequency bands in between.

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This means that, assuming there is no change in the homeowner’s AV and before any rebates, the homeowner can expect to pay the same or less in property taxes at each bracket.

Property taxes are calculated based on the AV, which is calculated based on the estimated annual rent when the property is leased. Owner-occupied homes (properties where the owner lives) pay lower tax rates.

Deputy Prime Minister and Finance Minister Lawrence Wong announced the addition of AV bands during his 2024 Budget speech.

Mr Huang said the change would still ensure those living in high-end properties continued to pay their fair share of tax.

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In the 2022 budget, he announced a two-step increase in property tax rates for residential properties. This is a wealth tax on investment properties and a higher proportion of owner-occupied private properties.

He noted that market rents had been relatively flat in the five years leading up to the announcement. However, rents have risen significantly since 2022 due to strong demand and COVID-19-related supply constraints.

While the government expects the property tax changes to affect the top 7% of owner-occupied residential properties, the increase in AV has resulted in nearly 13% of owners being affected.

The government previously announced tax rebates to cushion the impact of this year’s property tax changes. Mr Wong added that they will continue to monitor the property market and offer discounts again next year if necessary.

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To help pensioners living in high-rise residences who are experiencing cash flow problems, the Inland Revenue Authority of Singapore is offering them a 24-month interest-free repayment plan.

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Currently, married couples in Singapore can refund the Additional Buyer’s Stamp Duty (ABSD) on their second property if they sell their first property within six months.

To support seniors who want to “right-size their home”, this ABSD offer will be extended to single Singaporeans aged 55 and above from Friday.

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They can claim a refund if they sell the first property within six months of purchasing a lower replacement private property after the unit is completed.

If the unit is not completed at the time of purchase, senior citizens can return their ABSD within six months of obtaining a temporary residence permit or a replacement legal completion certificate for the residential property, whichever is earlier.

Developers can obtain ABSD relief if they sell all units in their development within a specified sales period. However, developers sometimes struggle to meet timeline requirements and are then subject to full clawbacks from the ABSD. Advance payment part. Developers who purchase residential land between July 6, 2018 and December 15, 2021 are required to pay 30%

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