Repayment mortgage interest calculation help

breadwinners

I am looking to redeem my mortgage in the fairly near future and would like to calculate an exact figure.


EDIT-Rest of post removed as wrong formula used.

Robert_Sterling_3

Calculate the daily interest rate as per your formula
Add 1 to get a daily multiplier
Take the last known outstanding balance.
Count the number of days, n, that have elapsed since then.
Multiply the known outstanding balance by the daily multiplier to the power n.

This will give the new outstanding balance assuming no further payment has been paid.

---lee---

A few points which may help:

1. How often are you adding the interest to the principal - normally this would be monthly - even with daily interest.

2. The date that you add the interest to the balance will have an impact on the next months interest calculation. i.e. This may always be on the 1st of the month and so will vary according to the days in the month/leap years etc.

3. Is the intest rate variable and what are the rules for when changes are applied (i.e. 1st of month following a change).

getmore4less

Post the real numbers you have, the interest rate, outstanding term and when you plan to redeam.


How close do you need this

breadwinners

Thanks to everyone who replied. I got there in the end & it was much simpler than I thought.

The formula above was wrong anyway and I didn't allow for weekends to affect payments received. Also 2008 was a leap year so using 365 rather than 366 affected the December amount.That's why the figures did not match up.