Interest on mortgage

pollyanna24

Because I've run out of things to do spreadsheet on (:rolleyes:), I started a spreadsheet to monitor the interest on my mortgage. 1, just to see how much we pay daily and 2, so I can figure out how much it is likely to be in say, six months or so.

I noticed at first that daily interest was £22.87 and then during the month stayed at this level or was £22.86.

Now all of a sudden, since yesterday and today, daily interest has jumped to £22.95 a day. I appreciate that it will go up during the month, and go down when January's payment makes it way in, but just wondered why there is such a variation when I am on a fixed rate mortgage.

Anyone know.

Gorgeous_George

Without seeing the spreadsheet, I have no idea.



GG

pollyanna24

Oh well, never mind. Thought everyone was going to tell me I'm crazy for doing this.

Only started the spreadsheet near the end of November, so maybe I haven't given it enough time yet.

Gorgeous_George

pollyanna

You're crazy for doing this



GG

pollyanna24

Haha:rotfl:

Yep, I have too much time on my hands! Work is so boring, so when the boss ain't looking, I gotta find something to do!

roswell

the more days between payment will mean more interest is charged eg february has 28 days but december has 31, the interest will be compounding as well so the extra days will mean you pay more interest each day closer to payment day than after payment day.

MarkyMarkD

As roswell says, you normally pay the same amount each month irrespective of the number of days, but the amount charged changes depending on the number of days. So, at the end of a 31 day month, you will owe more than you did at the start; at the end of a 28 day month, you will owe a fair bit less than you did at the start.

It all comes out in the wash at the end.