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mortgage calculations

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mondeoglx
mondeoglx Posts: 42 Forumite
in Mortgages & endowments
Please can some help and explain
We have a repayment Morgage of £31001.54
With 5 yrs and 8 mths we have been told payments 63 X £498.16 @2.64%
Then 4 payments @4.49% @£489.99
Says overall cost to this Mortage is £33379.04
Says we pay back £1.08 for every £ borrowed
The over all cost is 2.7% for comparison
Are these figures correct
What I can't understand is payments
Are cheaper for the 4.49 % than the 2.64%
Your help please

Comments

  • YHM
    YHM Posts: 650 Forumite
    The final 4 payments will pretty much be all capital if you have only a couple of grand left.

    Whereas the £498.18 will also consist of interest.
    I am a Mortgage Broker.

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice
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