Calculate payments for 2 mortgages

bodgethebuilder

As a man in his 30s you'd hope I'd be able to work this out but I'm struggling.

My wife and I keep some of our money separate. She has her own property which she owned outright. We've recently remortgaged both that property and the one we jointly own (and live in together) so that we could get a better mortgage deal and so that she can claim tax relief on her own property which is let out.

So whereas previously we just paid 50/50 on our current mortgage, I need to understand the formula to define the percentage she should now contribute towards our new mortgage for our current home, bearing in mind that she now has her own mortgage which was used to settle a proportion of our 'old' mortgage. n.b. She has retained some capital from her own mortage, the payments for which I obviously do not wish to contribute towards.

Say, for example, ignoring 'her' mortage the monies the good lady paid in equalled 23% of 'our' mortgage. What percentage of the new joint mortgage should we each be paying?

Any help much appreciated along with recommendations for online mathematics fundamentals. God forbid my sons should ever ask me for help with their homework.

thanks in advance,
Dave.

Mirno

If you've got Windows 7, run the calculator (Win key + r, then type calc).
Select "View > Worksheet > Mortgage".
Fill in the details (the amount of "her share", zero down payment, the term and interest rate), then hit calculate.

getmore4less

you use equity shares.

eg. If the old mortgage was 100k you paid 50k each.

now if she has put in 23k You pay 50k she pays 27k.

amnblog

all very complex and open to mathematical discussion

best that you just both sit down and decide what 'feels right' to both of you.

otherwise you should pay the same as you always did and she pays the rest as it is her equity that has led to improvements in any cash-flow on your home.