Why does fixed rate mean roller coaster interest payments?

Jonathon73

Hi

I just received my annual mortgage statement which shows how much interest I have paid each month over the last 12 months. I am on a fixed rate mortgage - yet the amount of interest varies every month. I thought it would go down a little each month and the amount being paid off capital would go up by a corresponding amount each month.

Three consequetive months saw my interest payments at: 1,627.59, 1473.21 and 1571.34

How can this be?????????? Does anyone know the answer?

Thanks

beecher

Is it due to the different number of days in each month?

Robert_Sterling_3

I do not know the answer so I will make one up.

The rate of interest went down but in the first of the three months the reduction was not passsed on to you.
In the second month the reduction was passed on to you and was backed dated so you got a double reduction. In the third month you got the appropriate single reduction.

I do not even believe this myself so I do not expect you to.

So I too wonder what the reason was.