Mortgage Stress Tester
Things to Note This calculator shows your mortgage payment at renewal, given an estimated future interest rate that you choose. It also shows what your payment would be if you refinanced your mortgage to increase the amortization. Here are a few things to keep in mind:
- As a very rough guideline, your future rate estimate should be at least 1-3% higher than your current rate—depending on how far out your maturity date is.
- You must re-apply and re-qualify to refinance.
- Refinancing requires at least 20% equity at a normal lender. (Remember, if home prices drop, your equity drops.)
- Unless you make prepayments, you'll pay more interest (sometimes a lot more) if you refinance to increase your amortization.
- Given the spate of mortgage rule changes in recent years, 35-year amortizations may not be available when you come to renew. Or, they may entail a significant interest rate premium.