Stupid mortgage question

geordie_ben

On a mortgage of £64000 @ 4.69% and a monthly payment of £362.65..

How much would be remaining on the mortgage after 1 year

And how do you work it out?

I thought it would be £64000 - 4351.80 (12x362.65) = £59648.20

opinions4u

Don't forget they charge you interest. So add on £3k or so for that!

Try an amortisation calculator.

http://www.calculator.net/mortgage-amortization-calculator.html?cloanamount=64000&cloanterm=25&cinterestrate=4.58&cpropertytaxes=0&cpmi=0&cothercost=0&cmonthoryear=year&x=35&y=20

geordie_ben

opinions4u wrote: »

Don't forget they charge you interest. So add on £3k or so for that!

Try an amortisation calculator.

http://www.calculator.net/mortgage-amortization-calculator.html?cloanamount=64000&cloanterm=25&cinterestrate=4.58&cpropertytaxes=0&cpmi=0&cothercost=0&cmonthoryear=year&x=35&y=20

But is the interest not included in the monthly amount because £64000 / 300 months (25 years) = £213.33?

But the monthly repayment is an extra £149.32

begbeer

Approximate interest on first year is 64k x 4.69% =- £3001.60 so therefore only paying £1350.20 of capital give or take a pound or 2 as monthly payments will drop it a little each month

Morgage_Confused

After 1 year................remaining mortgage £62,620

TheWebDev

opinions4u wrote: »

Don't forget they charge you interest. So add on £3k or so for that!

Try an amortisation calculator.

calculator.net/mortgage-amortization-calculator.html?cloanamount=64000&cloanterm=25&cinterestrate=4.58&cpropertytaxes=0&cpmi=0&cothercost=0&cmonthoryear=year&x=35&y=20

If you follow the above link you can click on the 'month' radio button to show how your monthly payments are broken down into interest and principal.

Principal is just a fancy term to describe the reduction of your outstanding balance.

Sorry that I had to remove the hyperlink, but I'm not allowed to post it

opinions4u

geordie_ben wrote: »

But is the interest not included in the monthly amount because £64000 / 300 months (25 years) = £213.33?

But the monthly repayment is an extra £149.32

There is a debt. They add interest to it. So the debt goes up by the amount of any interest added.

There is a contractual monthly payment to cover both the increase in the debt for the interest and repayment of capital. This reduces the debt.

[Deleted User]

Hi,

here's the MSE Mortgage Calculator.