Blog by Betsy Carstairs

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Hot market

Summer time & the livin ain't easy for those purchasers looking to buy. This is unusual as over my 20+ years in "the business" traditionally the summer months in Vancouver are slow..... Why???? Well because 50% of the buyers are off on holidays. This summer is different with record high temperature & low inventory we have a flurry of buyers driving prices up ( up from Feburary 09's prices) My realtor sister-in -law for instance last week had 27..... YES TWENTY SEVEN offers on a house she listed on the West Side!!! I am a curious person & needed to see what was triggering this unusual heightened interest in buying property.When I was talking with a mortgage broker today she deducted that the new 35 year amortizations & the 3.69% rate guarantee of 2 months ago was driving purchasers to take advantage of this cheap money. The old rate with the 120 day rate hold is running out at the end of September. For savvy clients that have this guarantee it is over 1/2% lower than today's rate of 4.19% which in the chart Kerry sent equates to a savings on a $400,000. mortgage of $118.00 per mo !!!! 

   
 
Hi Betsy 
Here is the comparison sheet. 
Best
Kerry Casidy  Ambro & Ass mortgage broker
Standard Mortgage Worksheet for Monthly Payments, No Amortization Table          
Semi-annual rates only          
         
Input Data 1 2 3 4 5  
Initial Principal $400,000 $400,000 $100,000 $100,000 $100,000  
Annual, nominal interest rate 3.69% 4.19% 3.69% 4.19% 0.00%  
Nominal Amortization Period (years) 35 35 35 35 0  
             
Computed Data            
Effective Annual Rate (to 2 decimals) 3.72% 4.23% 3.72% 4.23% 0.00%  
Periodic Interest Factor (Monthly) 0.003051624 0.003461572 0.003051624 0.003461572 0  
Months to Amortization 420 420 420 420 0  
Periodic Payment, Monthly 1690.91333 1808.208707 422.7283325 452.0521767 #DIV/0!  
Rounded to nearest cent 1,690.91 1,808.21 422.73 452.05 #DIV/0!  
Rounded to nearest dollar 1,691.00 1,808.00 423.00 452.00 #DIV/0!  
       
This spreadsheet calculator allows you to compare the payments for up to five scenarios.  
     
         


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