Possible MFW is very confused - some help needed please..

MrsBartolozzi

I'm a really confused possible MFW. I was juggling with the figures to see if we can pay off the mortgage quicker.

I'm very confused with the figures I got here: (all figs are from memory so more or less correct)
http://calc-calc-calc.net/get/calc/Mortgage-Overpayment/v1/?l=110000&i=4.78&t=17&o=500&m=789.10

Basically as it stands now, the monthly payment is £789 approx, which, over 17 years is £160k approx.
But if I overpay by £500 a month so it's £1289 the length only goes down to 11 years, 8 months. I'm confused because 1289x12mthx11 years, 8mths = £180,460

So how is this a good deal??

I'm maybe reading the mortgage calculator wrong (I do find them confusing) so maybe someone can see where I'm getting mixed up.

Thanks for all help,

MrsB.

Baby_steps_2

This seems to be a bit of a funny calculator. It seems to stop the OP at some point (can't work out when though mentions something about an anniversary, thought this was a year but that doesn't work!!) and therefore reverts back to 789 at some point

If you change the minimum payment to 1289 instead it shows, you will have paid the mortgage off in 8 year 8.5 months so 1289*8year 8 months = 134,690.

It may be best finding another calculator, i'm sure someone on here can provide you with a better one as like i said this has a weird way of working things out!!

MrsBartolozzi

Thanks, that makes some sense - and 8 years!! That's the kind of figure I was hoping for.
Right, I've got to get the job first, but figures look good. Thanks for your help Baby Steps, do you have a favourite calculator I could try?

silver_4444_uk

Hello MrsBartolozzi,

If you try the Egg overpayment calculator listed in post no. 3 of the sticky "Overpayment calculator here", you will find that you will save about 26k and pay your mortgage off in 8yrs 9mths, if you overpay by 500pm.

Rgds.
Silver

MrsBartolozzi

Thanks Silver, the Egg one is much clearer, I'll use this.