i want to be mortgage free but motivation needed

lapat

hi all

maybe someone can help
im looking to be MFi in eight years i have one problem though i dont have extensive motivation and the only way i can see in getting round this is viewing my mortgage balance on a daily/weekley basis.
now heres the sticking point im with alliance and leicster and for the life of me i cant seem to be able to view my mortgage on line any help would be greatley appreciated

zekepes

No idea about viewing it online (I would just recommend giving them a call in the morning for help).

Right now I would dig out your last mortgage statement, any interest rate increase notices and what you have paid since the last statement and get going on excel (or any spreadsheet). I love looking at the longterm effects of paying off a bit more this way - it is also easy to compare how your mortgage is going now compared to meeting the regular payments.

I would be happy to start a spreadsheet for you that helps.

weezl74

Hi lapat, good luck with your goal, wish you all the best with that.:D

Zekepes, you sound better at maths/excel than me, so a question- I've set up a spreadsheet so I can rejig the amounts I pay in and calculate how much this will shave off the capital each month. Only difficulty is, I'm only clever enough to get it to work it out as if interest is charged monthly, at day one (mortgage payment) but my interest is calculated daily.

Any ideas how to do that?

Thanks in advance for any help!;)

Weezl

zekepes

weezl74 wrote: »

Hi lapat, good luck with your goal, wish you all the best with that.:D

Zekepes, you sound better at maths/excel than me, so a question- I've set up a spreadsheet so I can rejig the amounts I pay in and calculate how much this will shave off the capital each month. Only difficulty is, I'm only clever enough to get it to work it out as if interest is charged monthly, at day one (mortgage payment) but my interest is calculated daily.

Any ideas how to do that?

Thanks in advance for any help!;)

Weezl

Thanks for the compliment but I very much doubt it!

I would do the same as you are doing as you pay monthly, not daily. Then in case of daily calculation of interest, the capital repayment is impacted the day after you pay your installment.

Well making your interest calculation for the month, the day you pay in your installment is close enough for me anyway. I think it is the annual vs daily that makes the difference. The way I see it, if you make payments monthly then the daily becomes monthly.....I am not confident I am correct here though!

Trying_to_be_good

I have a formula that calculates the interest due (i.e. added to the mortgage) whenever a payment is made (regular or an extra payment).

I have five columns on the spreadsheet -
A - Date
B - Description (e.g. 'Regular Payment' or 'Extra Payment' or 'Adjustment' for the minor changes to make my figures agree the bank's)
C - Debits (i.e. interest added to the account or an adjustment, see above)
D - Credits (amounts I've paid off)
E - Balance

So in the Debit column (of row 5 in this example) is the interest formula:
=E4*(A5-A4)*VLOOKUP(A5,Tracker_Rates_018,4)/365
=last balance x number of days x annual interest rate/number of days in the year

The VLOOKUP looks up the payment date in a table that shows the current interest rate (and previous interest rates) so you only need to update the interest rate in one place, not all though your worksheet. This can easily be relaced with the actual interest rate if you want to stay simple (e.g. 6%).

Whenever the rate changes (I have a tracker), I insert a line on the worksheet (I have all the planned payments until the whole thing is paid off) for the last date the old rate applied, so it calculates the interest properly.

You can also do this for any individual date when you want a daily balance. And you can draw nice charts showing the decreasing balance ;-)

Hope this makes sense because I think it's gone a bit geeky...