6/11/2023 0 Comments Cibc loan calc![]() ![]() Three years completed out of a 5-year term = 60% complete.Another way to look at this is to calculate the percentage weights. You have already completed 3 years out of 5 years of your mortgage term, so there is more weight on the new mortgage rate of 2% for the remaining 2 years. Your lender is currently offering a 5-year fixed mortgage rate of 2%. Your blended mortgage rate will be weighted based on the time remaining in your mortgage term.įor example, let's say that you have a 5-year (60-month) fixed mortgage at 3% with three years (36 months) left in its term. ![]() You can blend and extend a fixed mortgage at any time if your lender allows blended mortgages. For example, after accounting for penalties and fees, your blended rate might be 2.60%. Instead, these penalties and fees will be added to your blended mortgage rate. Some banks may still charge a prepayment penalty or charge administrative fees, but it will most likely not be charged upfront. This blended rate is then extended for another mortgage term, which will be 5-years in this case. You will get a blended rate somewhere in between your existing rate of 3% and the new 5-year rate of 2%, such as a blended rate of 2.50%. You can get a blended mortgage rate to first blend the new rate into your mortgage. ![]() You don't want to pay the significant mortgage penalties upfront, which can amount to tens of thousands of dollars, but you still want to take advantage of the low mortgage rate being offered. It currently has a mortgage rate of 3%, but your mortgage lender is offering 2% for mortgage renewals. Blend and extend mortgages are for a new term, and not just for the remaining length of your term.įor example, let's look at a 5-year fixed mortgage that has three years left in its term. Your blended mortgage rate will be somewhere between your existing mortgage rate and your mortgage renewal rate. This allows you to "renew" your mortgage by mixing in a new mortgage rate before your mortgage renewal date, which means that you can avoid breaking your mortgage and paying prepayment penalties.īlend and extend mortgages allow you to renew early or refinance your mortgage without penalties. If you choose to calculate a Blend to Term mortgage, your new mortgage term will simply be the mortgage term remaining on your old mortgage.īlended Mortgage Rate: This is your new blended mortgage rate.īlended Mortgage Amount: The amount you owe on your new blended mortgage.īlended Mortgage Term: The term length of your new blended mortgage.Ī "blended mortgage" is when you blend two mortgage rates, your current mortgage rate and a mortgage renewal rate, into one mortgage rate. New Mortgage Term: The term length of a new mortgage. Mortgage Interest Rate: The mortgage rate offered by your lender for a certain mortgage term length. For example, if your mortgage outstanding was $500,000 and you borrow an additional amount of $100,000, your blended mortgage would be for $600,000. Mortgage Term Remaining: The months or years remaining until the end of your mortgage term.Īdditional Mortgage Amount: You can choose to borrow more money by accessing your home equity. Original Mortgage Term: The term length of your mortgage. Mortgage Interest Rate: Your current mortgage rate. Mortgage Amount Outstanding: The remaining amount of your mortgage, which is the amount that you still currently owe. With a blend to term, your new blended mortgage rate will only apply to the remaining term of your original mortgage. Blend and extend lets you extend (renew) your mortgage for another term at the new blended mortgage rate. This blended mortgage calculator lets you calculate your blended mortgage rate, blended mortgage amount, and blended mortgage term.īlend and Extend or Blend to Term: This is the type of blended mortgage that you want to calculate. How to Use This Blend and Extend Mortgage Calculator ![]()
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