Mortgage Spreadsheet Question

GreenBoy_2

Hi

Sorry - little off topic, but i have been playing with a spreadsheet to calculate mortguage repayments, so i can play 'what if' on additional payments etc, and have a question regarding payment type...

Generaly using Microsoft Excel, the payment calcs allow an optional input for whant the payment is made - at the begining or end of the payment period, which actualy makes a diference on the interest made - which over the life of the mortgage adds up to a few hundred pounds...

So the question is - can I just change the date of my payment to the bank to take advantage of this?

Currently my payment is made on the first of the month... but I do not know if this is the end or middle or begening of the payment period.. how do i find out... the bank only confirms the date payment is due...

Thanks in advance

GreenBoy

PS - fro those that want to know the formulas to use in Excel are PMT, IPMT and PPMT, and have a format similar to this:

PMT(rate,nper,pv,fv,type)

For a more complete description of the arguments in PMT, see the PV function.

Rate is the interest rate for the loan.

Nper is the total number of payments for the loan.

Pv is the present value, or the total amount that a series of future payments is worth now; also known as the principal.

Fv is the future value, or a cash balance you want to attain after the last payment is made. If fv is omitted, it is assumed to be 0 (zero), that is, the future value of a loan is 0.

Type is the number 0 (zero) or 1 and indicates when payments are due.

humfer

You should be able to change the payment date - just clarify with the mortgage company first. Paying at the start of the month will minimise the amount of interest charged