Real Estate

Question - mortgage interest rate

  • Last Updated:
  • Feb 9th, 2021 5:17 pm
[OP]
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Feb 7, 2021
3 posts

Question - mortgage interest rate

Hello, i have a simple question as I am trying to understand the difference in mortgage rates, let`s say for a closed fixed 5 years term with a 25 years amortization.

A blog here says that the difference is only the difference in the monthly payment multiplied for the number of payments.
" a 1% difference in mortgage rate on a $200,000 home with a $160,000 mortgage, increases your monthly payment by almost $100. Although the difference in monthly payment may not seem that extreme, the 1% higher rate means you’ll pay approximately $30,000 more in interest over the 30-year term." https://www.moneyunder30.com/1-percent- ... tgage-rate

However there is also a difference in the amortization curve as more principal is paid over the term in the case of a lower rate. Could you point me out to a site where this is explained? Is this a benefit or not considering that even if two mortgages have different rates the amortization period is the same?
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