My Excel mortgage spreadsheet

tiggerjj

Hi,
I have two macs, one running Numbers 09 and one running Excel for Mac 2011.
As locoblade requested I have a little test. Downloading both loco's versions and trying to run them on each mac (Both running Lion OS)

Numbers Mac, can not open either file, I get the same error as allisond.
With Excel Mac, the Mac compatible ones works beautifully, but the non-compatibility one can be opened but everything is locked.

SO summary, Numbers can hack the wonderful spreadsheets, and people using Excel for Mac MUST use the compatibility version (second download in the list)

Locoblade

Many thanks TigerJJ, thats really useful. The compatibility version was created because earlier Windows and current Mac versions of Excel can't cope with later Excel functionality that allows individual cells to be locked or unlocked. With those versions if any cell is locked, it locks the entire sheet which is obviously no use when you need to edit some of them.

I could just dish out the compatible version to everyone but it's got a lot of additional/duplicated functions hidden within it so its quite a bit bigger in size and not quite as slick.

newyorkcityzoo

Hi Locobalde

Great spreadsheet. I have a mortgage question that I'm hoping you can help me with...

I would have expected that a regular monthly overpayment would have the same impact as the same monthly payment into offset savings everything else remaining equal.

When doing a comparison using your spreadsheet the overall interest paid is the same use both approaches but the mortgage is paid off quicker when doing the overpayment. Can you explain why this would be the case?

would much appreciate understanding this as a mortgage providers have advised they have exat same impact.

Thrugelmir

newyorkcityzoo wrote: »

I would have expected that a regular monthly overpayment would have the same impact as the same monthly payment into offset savings everything else remaining equal.

Any overpayment on the mortgage will have the effect of reducing the capital balance owed.

Money paid into the offset account. Will only have the impact of reducing the mortgage by the amount of interest earnt on the money.

Calzor_Suzay

Thrugelmir wrote: »

Am overpayment on the mortgage will have the effect of reducing the capital balance owed.

Money paid into the offset account. Will only have the impact of reducing the mortgage by the amount of interest earnt on the money.

If an overpayment is made to the mortgage to reduce the capital I guess you can't then take it back out? or would it depend on the lender.

On the other hand money left in the offset account(s) reduces the interest calculated but you can draw against it straight away.

I guess the first is better to reduce overall but less flexible to funds you've paid in.

Thrugelmir

Calzor_Suzay wrote: »

If an overpayment is made to the mortgage to reduce the capital I guess you can't then take it back out? or would it depend on the lender.

On the other hand money left in the offset account(s) reduces the interest calculated but you can draw against it straight away.

I guess the first is better to reduce overall but less flexible to funds you've paid in.

Offset mortgages often incur a higher rate of interest, albeit marginal.
So depends on ones own personal circumstances if its a facility worth paying for.

boardtc

Hi, I had this downloaded on another machine. The link I had is not working @ locostfireblade, where is the home for this?

Thanks!

Locoblade

Hi

Sorry I didnt see this before. If you're regularly paying into an offset pot I made the assumption that its being kept seperate from the mortgage pot for a reason, maybe because you might need access to that money at some point, otherwise you might as well just pay in as an overpayment.

There is a "Offset Savings equal Loan after (years)" line in the overview which gives you the date when the offset matches the loan remaining, this date will be the same as you're seeing when using the regular overpayment method, it effectively gives you the date when you could transfer the money from the offset account onto the mortgage and clear the entire debt if you wanted. I made the assumption though that you want to have access to those offset funds for the longest time possible, so once the offset and the mortgage remaining are equal you it assumes you'll either pay the mortgage from the offset pot and be effectively mortgage free that way, or continue to pay from your usual earnings and then have a nice lump sum left once you've finished paying it off, and it's the assumption that you'd pick one of these latter two options that gives the longer term.

cheers

newyorkcityzoo wrote: »

Hi Locobalde

Great spreadsheet. I have a mortgage question that I'm hoping you can help me with...

I would have expected that a regular monthly overpayment would have the same impact as the same monthly payment into offset savings everything else remaining equal.

When doing a comparison using your spreadsheet the overall interest paid is the same use both approaches but the mortgage is paid off quicker when doing the overpayment. Can you explain why this would be the case?

would much appreciate understanding this as a mortgage providers have advised they have exat same impact.

Locoblade

The current link is in the original post on this thread, Ive updated them along the way.

boardtc wrote: »

Hi, I had this downloaded on another machine. The link I had is not working @ locostfireblade, where is the home for this?

Thanks!

jeremy2012

Thanks Locoblade for a great spreadsheet

I have been making simulation in order to compare the best option.

But I just realised that there is many an option which I can’t see available, or hopefully it is and I have yet not been able to find it.

Within the offset option, we can see that the repayment period does decrease.

However, is there an option than instead of the period to be reduced, then the amount of the monthly repayment will be instead?

It will be interested to see the difference in regards of interests – in case there is any impact

Have a nice evening.

Best Regards,

Jeremy

Ps ,first time I use that forum - so not sure I should click reply to that latest message or else.