Working out mortage total

crabbycrabcrab

kingstreet wrote: »

You're assuming you remain there for the whole mortgage term and there is no rate change during that time?

TBH I tell my clients you'll pay back roughly double what you borrow and they seem happy to accept that.

Are you planning to use this information to compare mortgage products?

I am assuming I stay for the whole term and i put the rate 2% higher than it actually is. I'll be paying extra of the mortgage when I can too within the no fee fresh hold. So hope It'll be paid faster than the 25 years of the mortgage I choose.

It is just an estimate after all. I'm not using it to compare mortgage products. Its just to get a basic over view of what kind money I'll be spending over the period.

Thanks for you replies anyhow.

nottsnovice

I never see the point of working out the total "cost" of the mortgage in that way - a pound spent in 25 years time bears little comparison to a pound spent today.

kingstreet

Me neither, but whatever floats your boat!

John1993_2

crabbycrabcrab wrote: »

The true price I'm paying for the home. The price is 122k. However with all the interest on top i would like have an estimate of how much I've really paid.

As others have said, the "true cost" should never involves imply adding up amounts paid at very different times and giving them all equal weight.

If you did this, a perpetual bond paying you £1 per year forever would be worth an infinite sum, rather than being worth about £20, as is really the case.