Being majorly thick... but APR and monthly interest on mortgage..?

jamtart6

So sorry for the dim question.
Basically trying to create my own spreadsheet for our mortgage.
Payment 1 of 300 has just gone out of my bank :eek: this is quite possibly the only month I'll ever be excited about a mortgage payment!

What I want to do is basically work out how much the debt will be in Feb..

e.g.
January £100'000 debt
January mortgage pays off £1000

Februarys balanace is £99'999

but if the mortgage interest rate is 5%...do I just multiply £99'999 by 1.05 ??

Again sorry for the thick question...GCSE's are getting easier remember :rotfl:

ailuro2

What works for me...

I have a simple excel spreadhseet so I don't have to work it out manually

first column (A) is the outstanding balance, second column (B)is the interest payment, third column(C) is the balance after payment. Column D will list the month if you prefer.

So, the first month, type in the full amount in cell A1.

Then in column B type =A1*(3.5/12/100) where 3.5 is interest paid, adjust to suit.

In column B type =A1+B1-400 if 400 were your interest payment(modify to suit)

Then on the next line, in column a, type =C1 this will automatically place the outstanding balance for the beginning of the next month.

Pull the little black + sign on the cell down to pull the formulas down to row 2 on columns B and C.

Then pull all the columns down until you have a magic zero figure....:D

hope this makes sense, if you start overpaying you can modify the column so column d is where you add any overpayments, and column C can subtract the overpayment.

Welshlassie

I found a nice way of keeping track of my mortgage and overpayment etc is using the snowball calculator on whats the cost and saving it.

I just add the OP and monthly payments interest as they happen and it calculators everything accordingly.

jamtart6

thanks guys! much appreciated! felt so dim for asking!

it was the 3.5% that threw me... I wasn't sure if I divided by 12 and 100 or just multiplied each money by 3.5!!

thank you so much

Depressingly 75% of my first payment was interest!! GUTTED!!