Exploring Leumi Bank Mortgage Offers

Mortgage Offer 1

• Amount to be paid by the end of the period: ₪1,851,111
• First monthly refund: ₪6,051
• Predicted maximum monthly return: ₪6,263
• Projected total interest rate: 5.61%
• Mortgage Composition:
  • Unindexed fixed interest rate: 50%
  • Prime: 50%

Analysis:
Mortgage Offer 1 offers a balance between stability and flexibility. Half of the loan is locked in at a fixed interest rate, providing predictability, while the other half is linked to the Prime rate, which can fluctuate. The projected total interest rate of 5.61% means you will end up paying ₪1,851,111 over 25 years. This offer starts with a relatively moderate monthly payment of ₪6,051, with a potential increase to ₪6,263 depending on interest rate changes.

Mortgage Offer 2

• Amount to be paid by the end of the period: ₪2,011,439
• First monthly refund: ₪5,749
• Predicted maximum monthly return: ₪7,955
• Projected total interest rate: 6.14%
• Mortgage Composition:
  • Unindexed fixed interest rate: 33.33%
  • Prime: 33.33%
  • Variable indexed every 5 years, based on government bonds: 33.33%

Analysis:
Mortgage Offer 2 presents a more diverse mix of interest rates. With one-third of the loan at a fixed interest rate, one-third linked to the Prime rate, and the final third adjusted every five years based on government bonds, this option provides flexibility but introduces a higher risk of fluctuating payments. The initial monthly payment is lower at ₪5,749, but it can increase significantly to ₪7,955, depending on changes in the economy. The projected total interest rate of 6.14% results in a total repayment of ₪2,011,439.

Mortgage Offer 3

• Amount to be paid by the end of the period: ₪1,741,557
• First monthly refund: ₪5,805
• Predicted maximum monthly return: ₪5,805
• Projected total interest rate: 5.04%
• Mortgage Composition:
  • Unindexed fixed interest rate: 100%

Analysis:
Mortgage Offer 3 is the most straightforward of the options, with the entire loan under a fixed interest rate. This provides maximum stability, as your monthly payments will remain constant throughout the life of the mortgage. With a projected total interest rate of 5.04%, the total repayment amount is the lowest of the three offers at ₪1,741,557. The first and maximum monthly payments are both ₪5,805, meaning you won't have to worry about fluctuations in your payments over time.

Amount to be Paid by the End of the Period

This figure represents the total amount you'll repay over the life of the mortgage, including both the principal and interest. It is calculated based on expected changes in interest rates and inflation as forecasted by the Bank of Israel. However, this amount does not include any fees or expenses related to the mortgage.

First Monthly Refund

The first monthly refund is the initial amount you'll pay in your first month of the mortgage. This figure includes both principal and interest but does not account for potential changes in interest rates or inflation that may affect future payments. It's important to note that this amount might not reflect what you'll pay each month, as payments can vary depending on the loan's structure.

Predicted Maximum Monthly Return

This is the highest monthly payment you might face during the term of your mortgage, based on forecasts of economic conditions, such as changes in interest rates and inflation. While this figure helps prepare you for possible increases, it’s based on market predictions, so the actual maximum payment could differ.

Projected Total Interest Rate

Also known as the actual cost of credit, this rate reflects the internal rate of return, which calculates the current value of all future mortgage payments. It includes factors like expected monthly payments and changes in interest rates. However, this calculation doesn't include additional expenses such as fees or insurance.