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Formula for Repayment Mortgage needed?
freaksaver
Posts: 92 Forumite
Hi
I am trying to work out the difference in what I will be paying back for an IOM or Repayment - I have worked out what the total amount is for the IOM but what is the formula for working out the total interest on a Repayment Mortgage (hope this makes sense)??
Jaime
I am trying to work out the difference in what I will be paying back for an IOM or Repayment - I have worked out what the total amount is for the IOM but what is the formula for working out the total interest on a Repayment Mortgage (hope this makes sense)??
Jaime
0
Comments
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got excel?
It's easier.I work for a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, 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.( I have ammeded this signature slightly, as I do not actively provide mortgage advice. However, I support and adhere to the moneysavingexpert mortgage broker code of conduct)0 -
Yes - I have got excel0
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the funtion you need to use is the pmt funtion,
which will ask for rate, Nper, and pv.
You will need to decide on whether you are going to use daily interest, monthly interest, or annual interest for your calculation -
Annual
rate is your interest rate (but remember it is a %, so 5% is 0.05), Nper is your number of payments= 25 (years) and pv = present value (loan size)
Monthly
rate = rate/12
term = term*12
pv = loan
Using £100,000 over 25 years at 5% you will get
Annual = 7095.25 (then divide this by 12 to get monthly figure = 591.27
Monthly = 584.59
(in fact, you get a minus figure, you just need to reverse the signs.)
If you want total cost, then you just need to multiply by total payments (so for a 25 year term mortgage = 300)
If this doesn't make sense then let me know
MMI work for a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, 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.( I have ammeded this signature slightly, as I do not actively provide mortgage advice. However, I support and adhere to the moneysavingexpert mortgage broker code of conduct)0 -
Thanks MM - I did it.
Excel is a great thing, I just seem to learn more and more about it, it seems never ending.
Thanks again
Freaksaver0
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