Article courtesy of MCAP. The best way to understand the concept of interest adjustment is to start with knowing and understanding the term “Interest Adjustment Date” or IAD. Every fixed rate mortgage has an IAD and the name implies that this is the date upon which an interest adjustment will take place but that’s… Continue reading Interest Adjustment – Getting Up to the Starting Line
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Mortgage Amortization – A Common Sense Overview
Article courtesy of MCAP. A good way for a borrower – let’s call our borrower Barry – to understand the concept of “amortization” in the context of mortgage repayment is to look forward to a time when the mortgage is fully re-paid. How much is Barry borrowing and how much can he afford to pay… Continue reading Mortgage Amortization – A Common Sense Overview
Compound Interest: Unraveling the Mystery
Article courtesy of MCAP. “If you start saving early in life, the power of compound interest will allow you to retire comfortably.” This is what financial planners tell young Canadians. And it’s true. But what is compound interest? The most basic definition is that compound interest is interest on interest. If you have an… Continue reading Compound Interest: Unraveling the Mystery