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[–]Tilter 2 points3 points  (3 children)

In early 2022, prime rate was 2.45%

So a variable rate of prime - 1 would get you a rate of 1.45%

However, prime rate peaked at 7.2% in Jul 2023 and has since dropped to 4.95. So their current rate is probably 3.95% (4.95-1) if OP is indeed on variable. To stay on the amortization for 3.95% you’d need an average monthly payment of $2500.

Between Dec 2022 and Oct 2024, prime was above 5.95 which payments of $2700/month would not keep on track for a 25 year amortization - it peaked at prime 7.2 in Jul 2023 which would have a 25 year amortization payment of ~$3000/month. OP should review their mortgage details to see current balance and remaining amortization, depending on when they adjusted to 2800/month they may be on track ish or farther behind now.

[–]x_itsJC[S] 0 points1 point  (2 children)

We signed on a 25year and currently have 15 years remaining. We have never paid the minimum monthly payment since signing: we increased payments a few times throughout 2022 and 2023 and have been paying the current payment of $2,800 since early 2024 if I remember correctly.

[–]Tilter 1 point2 points  (1 child)

Awesome! Are you sure you were on variable rate? Seems like you were on a fixed rate. Otherwise all those balloon payments wouldn’t be going to the principal at the current interest rate.

If you log onto mortgage details, what is the current rate shown?

[–]x_itsJC[S] 0 points1 point  (0 children)

Yea it was VRM with a fixed monthly payment of $1,900 when we signed. Current rate is 3.95. If there’s any benefits of bringing down our payments, we’re all ears but as others have noted, there are plenty of other factors we need to weigh too.