How to calculate mortgage payments / amounts???

kinkladze

I am currently in the processes of sorting out the re-mortgage for my house and have several different quotes which all appear to be similar. It looks like i may be putting the admin fees onto the loan rather than paying it up front.

Is there any way / is there a site that will help me figure out which mortgage deal will leave me with the lowest mortgage balance at the end of the term.

I know that by multiplying my payments by the months in the deal tells me how much i've paid, but that doesn't take into account the interest paid and therefore the grand total left at the end of the term)

Hope that makes sense and someone can help me??:huh:

Many thanks in advance,

K.

Moniker

I found the website of the Mortgage Professor very useful:

http://mtgprofessor.com/Default.htm

Although American, the sums work in exactly the same way so just ignore the dollars and imagine it in pounds. There are several different calculators you can use to check the effect of different interest rates or making overpayments.

Good luck.

danm

you can also do this quite easily in excel assuming monthly payments

use the PMT function.

if your interest rate is say 5%, term is 240 months and loan amount is 100,000, the formula would be

=pmt(5%/12,240,-100,000)

to work out the interest on the monthly payment it would be

=100,000*(5%/12)

the principal paid back would then simpy be one minus the other. You can put together quite a useful spreadsheet in 10 minutes that lets you plug in overpayments etc