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For This Project, when I purchased it, the prime interest rate was 6%, and my mortgage interest rate is prime plus 0.75%.
Now the prime rate has dropped to 3.5%, and the mortgage rate dropped to 4.25% accordingly. For a mortgage of $650,000, it means a saving of $1,350 every month, which goes to the principal payment. Since the principal payment per month was just $1,200 every month, this makes the principal payment doubled! Now the principal payment is equal to the interest payment, for a 25 years mortgage, this is not supposed to have happened after ten years, and this property has just been purchased for one and a half years.
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