I don't know how you do calculation. Let's compare borrowing $2500000 on different plans,
A-Plan: With 1.25% rebate, and p-2.25% first three months, and rest P-0.375%. You pay $1000 bi-weekly, and put the rebate amount($3125) with the first payment. After three years, you mortgage balance will be $192476.8002
B-Plan: With P-0.90, no rebate, same bi-weekly payment $1000, After three years, you mortgage balance will be $193599.4157
At this point if you can switch to some other better rate without penalty, try to get another 3-year: 1.25 rebate, p-2.25 three month, and rest p-0.375 again. You will be very happy.
However, if you will be bound to the high rate (p-0.375) for the left 3 years, at the end of year 5, the balance will be:
A-Plan: $153910.364
B-Plan: $153227.2173
Then B-plan will be a little bit better.
Let me know if there's something wrong.
A-Plan: With 1.25% rebate, and p-2.25% first three months, and rest P-0.375%. You pay $1000 bi-weekly, and put the rebate amount($3125) with the first payment. After three years, you mortgage balance will be $192476.8002
B-Plan: With P-0.90, no rebate, same bi-weekly payment $1000, After three years, you mortgage balance will be $193599.4157
At this point if you can switch to some other better rate without penalty, try to get another 3-year: 1.25 rebate, p-2.25 three month, and rest p-0.375 again. You will be very happy.
However, if you will be bound to the high rate (p-0.375) for the left 3 years, at the end of year 5, the balance will be:
A-Plan: $153910.364
B-Plan: $153227.2173
Then B-plan will be a little bit better.
Let me know if there's something wrong.