Make yourself a double-ended mortgage grid!

halloweenqueen_2

I wish I'd known about mortgage payments before!!
Well done on the credit card level, thats great!

Miss_Penny_Pincher_2

Thanks HQ - must have been all the treats and sparkly tops etc that added up - have given myself a low budget for 'treats' now - on Friday I pondered very carefully before I bought myself a bracelet from continental market for £3 - such a small thing made me really excited :rotfl: its amazing how much my mindset has changed!

gallygirl

That's 1/166th of a whole box on your grid!!!!!!!!!!:rotfl: :rotfl: :rotfl: :rotfl:

Financial_Savvy

A couple of points to my fellow mortgage free wanabeesssss

1. Make sure that there is no penalty in making an overpayment.

2. Ensure that the mortgage product you are on calculates the interest on a daily basis otherwise overpayment is not as effecient if they don't calculate the interest until the end of the month.

3. Find out your interest rate on your mortgage and work out how much interest you pay per day on your mortgage. You will remain very motivated as you see this reduce.

4. Record your balance somewhere so you can see it reduce.

sturgeon62

How do you work out the daily interest rate? please

Financial_Savvy

What I do is log onto my mortgage account via internet banking and record the balance in my outlook calendar. Then log on the next day and record it again.

My overpaying that I have done on my mortgage has reduced it alreay by about 40pence per day. Sounds small but this is a big saving over 25 years..........

Let me know how you get on

sturgeon62

Haven't got an online mortgage account, wondered if there was some calculations I could do to work it out. Have just made my second overpayment, was trying to overpay at least £20 per month but have managed to overpay £50 and then £65, amazing what you can afford if you really try, even the kids have put money in my pig (they normally are asking for my change), taking packed lunch to work etc. Am really motivated but would love to see it chipping away even more. Many thanks

robnye

mortgage balance * (interest rate/100)
divided by 12 (months)
or 52 (weeks)
or 365 (days)

or change interest rate by moving decimal point to the left 2 places
ie 4.5% = 0.045

this only calulate how much interest..... it gets quite complicated if you want to know how much capital (amount still owing) is paid of each month

use excel or any other spreadsheet software
(H4*(D5/100))/12 is the formula where h4 box = mort balance, d5 box = interest rate

nb: the resulting figures are not precise (ie they dont match the mortgage company exactly)

halloweenqueen_2

Thanks, mine is on a daily basis, I get a statement every month and they illustrate every day of that month and how much interest, I've got no penalties either so I'm glad I picked this mortgage (more by luck than judgement I have to say!!).
Its a real incentive to try and get out of it quicker when you see how much interest you pay, still planning to knock ten years off and be free in 5 years!

Miss_Penny_Pincher_2

Yayyy I can knock 2 more boxes off now! Only another 185 to go :rotfl: