Are My Calculations Wrong? Mortgage Advice.

jennifernil

Wouldn't it be nice if we could all say to lenders, "here is what I want to pay, here is what I want to borrow, when can I get the money?"

regularsaver1

silvercar - do not be surprised about show allowance. some companies - although it may not be advertised , will allow to to claim some tax back for tights and your washing of your uniform. - I mean tights!

Mr_Vincent

Miss_Penny_Pincher wrote:

When taking out a mortgage over a long time e.g. 35 years the effect of compounding interest, even when the interest rate we are being charged is low, can mean that we end up paying back to the bank more than double what we borrow!

Sounds pointless to me borrowing and being expected to pay back double what you borrowed.
I mean you don't borrow a tenner and expect to pay back twenty do you?
Sorry for my sarcasm, you advice was appreciated and pretty much confirms my quiet suspicion.

jennifernil wrote:

Wouldn't it be nice if we could all say to lenders, "here is what I want to pay, here is what I want to borrow, when can I get the money?"

Wouldn't it be even nicer if we could say to the banks here's what I want to borrow, here's what I am quite happy to let you take in interest. Forget how long it takes, just don't keep me waiting longer than 2 weeks for it .
(actually I am repeating what you say here, just the other way round)

Miss_Penny_Pincher_2

Mr_Vincent wrote:

Sounds pointless to me borrowing and being expected to pay back double what you borrowed.
I mean you don't borrow a tenner and expect to pay back twenty do you?
Sorry for my sarcasm, you advice was appreciated and pretty much confirms my quiet suspicion.

My sentiments exactly which is why I'm overpaying on my mortgage to pay it off as soon as possible and reduce the interest I have to pay!

For example with a mortgage of £125,000 over 35 years at 4.99% you will be paying interest of £139,625 on top of paying back the £125,000 borrrowed! If the money borrowed is paid back within 15 years the interest paid back reduces to £52,811! A saving of £86,814!

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