To Estimate the Three Months'
Interest Costs:
| 1. To Estimate the Three Months' Interest Costs: | |
Step 1: |
(A) amount you want to prepay |
| Step 2: | (B) the Interest Rate under your Mortgage expressed as a decimal (For example, 6.75% =0.0675) |
| Step 3: | (C) A x B = C |
| Step 4: | (D) C/4=D, D is your estimated Three months' interest costs |
| 2. To Estimate the Interest Rate Differential Amount: | |
| Step 1: | (A) the current Interest Rate under your Mortgage expressed as a decimal (For example, 6.75% =0.0675) |
| Step 2: | (B) the current Interest Rate that we can now charge for a mortgage term offered by us with term closest to your remaining term. The interest rate will be our posted interest rate for the term minus the most recent discount you receive |
| Step 3: | (C)A - B = C, which is the difference between your current interest rate and the interest rate in B above (write C as a decimal) |
| Step 4: | (D) amount you want to prepay |
| Step 5: | (E) number of months for the remaining term of your Mortgage |
| Step 6: | (F) (C x D xE)/12 = F, F is your estimated Interest Rate Differential Amount |