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Mortgage statement help - interest payments?
moneysaving_madman
Posts: 60 Forumite
Hi
Some help would be much appreciated.
We've received our annual mortgage statement (our first).
The statement is broken up by credits and debits (payment and interest). Our mortgage is a fixed rate until the end of the year and we pay a fixed amount each month.
Payment is made at the beginning of the month and interest is calculated at the end of the month and the mortgage balance is adjusted accordingly. Payment exceeds the interest amount.
My question is that: Why does the interest payments for each month flucuate up and down?I would have thought the interest payments should be continuingly decreasing (as it is a fixed rate mortgage).
I know that there is interest being added each month and further interest will be calculated on the total balance. However, the interest amount is higher than the previous month even though the balance is lower.
Hope this makes sense! Any assistance much appreciated
Some help would be much appreciated.
We've received our annual mortgage statement (our first).
The statement is broken up by credits and debits (payment and interest). Our mortgage is a fixed rate until the end of the year and we pay a fixed amount each month.
Payment is made at the beginning of the month and interest is calculated at the end of the month and the mortgage balance is adjusted accordingly. Payment exceeds the interest amount.
My question is that: Why does the interest payments for each month flucuate up and down?I would have thought the interest payments should be continuingly decreasing (as it is a fixed rate mortgage).
I know that there is interest being added each month and further interest will be calculated on the total balance. However, the interest amount is higher than the previous month even though the balance is lower.
Hope this makes sense! Any assistance much appreciated
0
Comments
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If it's anything like my mortgage your interest is calculated on a daily basis, so you will pay more in the months that have 31 days & less in the months that have 30 days or 28 days.
I have noticed the same small fluctation on my mortgage statement & it is all down to the number of days in the month.0
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