confused about new mortgage interest

mashi_2

hi, very grateful if anyone could help with my concerns.. i have a new mortage, 3 years fixed at 3.99%. at the moment, i am paying approx £500 per month and then interest is charged at approx £400 per month. which means that i am only paying off my repayment mortgage of £100 per month at present. is this correct???

:huh:

roswell

what amount is the morgage for?

Joe_Bloggs

Let's work out what can with what we know.
1) interest rate 3.99%
2) Interest rate charged £400 per month.
The monthly interest rate is the annual rate /12 = 0.0399/12 = 0.003325
Monthy Interest = Principle * Monthly interest rate. Hence
Monthly Interest/Monthy interest rate = Principle.

Principle = £400/0.003325 = £120,300

The capital repayment is £100 a month making a total of £500.
Using a mortgage calculator with Priciple of 120,300, Interest £100, payment £502 gives a term of approx 480 months. That is 40 years !
Am I close ?
An extra payment of £132 per month would make the term 25 years, an extra £72 per month would make the term 30 years.
J_B.

mashi_2

hehee thanks! i actually have a 30yr mortgage at 126,000.

i am so confused!

Joe_Bloggs wrote:

Let's work out what can with what we know.
1) interest rate 3.99%
2) Interest rate charged £400 per month.
The monthly interest rate is the annual rate /12 = 0.0399/12 = 0.003325
Monthy Interest = Principle * Monthly interest rate. Hence
Monthly Interest/Monthy interest rate = Principle.

Principle = £400/0.003325 = £120,300

The capital repayment is £100 a month making a total of £500.
Using a mortgage calculator with Priciple of 120,300, Interest £100, payment £502 gives a term of approx 480 months. That is 40 years !
Am I close ?
An extra payment of £132 per month would make the term 25 years, an extra £72 per month would make the term 30 years.
J_B.

Joe_Bloggs

hi, very grateful if anyone could help with my concerns.. i have a new mortage, 3 years fixed at 3.99%. at the moment, i am paying approx £500 per month and then interest is charged at approx £400 per month. which means that i am only paying off my repayment mortgage of £100 per month at present. is this correct???

:huh:

My calculator says £126K @3.99% at 360 months term would give an repayment of £600.82. Initial interest £419, repayment aspect £182.
J_B.