Mortgage free in Forever Home :-)

beanielou

Watty1 said:

Totally befuddled and slips quietly out 

Toddles out also. 

LadyWithAPlan

Rach273 said:

It will be more because of the compound effect, so for the first year the interest saving would be £6.94, but for year 2 it would be (£320 + £6.94) x 0.0217 = £7.09, year 3 would be (£320 + £6.94 + £7.09) * 0.0217 = £7.25 etc. because you would be being charged interest on the interest incurred had you not made that capital overpayment.

This is where I find Excel really useful!

This is where I scuttle in - no, stride in

I think it could be argued simply SC  way but Rach sounds more detailed correctly as on year one you will have saved paying the £6.94 interest so that amount will not be sat waiting to be paid still - in actual fact you don’t have to pay off that £6.94 extra so your theoretical principal at end of year one without your OP would have been the principal plus that £6.94 you saved. 

however of course it’s daily interest so the compounding will not be exactly £6.94 year one and £6.94 +£7.09 year 2 saved from the principal going up etc .. so I would argue it would be more  - so you could build an excel which tracks principal balance plus interest saved daily . But do you care  

either way loads is the answer

do you have locoblades spreadsheet ? As that is pretty amazing -not looked to confirm if it does daily calc but I think it does -  I can find link if you don’t 

the clarity for me  is also as soon as one can to try to overpay to do so as the cumulative effect is huge / (unless one is getting loads in tax free savings OR pension contribution give a bigger saving esp if HR tax payer  )
as soon as one jumps ahead on the mortgage years - so op to get a year / 2 years ahead the better - this is why tiny OPs at the beginning of the mortgage - when they are most difficult given house buying costs- shunt you quicker down the timeline cos of this compound cost of borrowing. 

skint_spice

Way less complicated but I like to work out my daily interest each month and watch it fall. Looking forward to seeing a bigger fall next month when I start to repay bigger amounts.

Baileys_Babe

skint_spice said:

Way less complicated but I like to work out my daily interest each month and watch it fall. Looking forward to seeing a bigger fall next month when I start to repay bigger amounts.

I do this too, very satisfying.

savingholmes

My mortgage doesn't have an app - so I use the credit club on here to see what my mortgage actually reduced by each month. Then I get an annual statement which tells me my actual interest etc. I'm really hoping the company I'm with join the 21st century sometime soon. They were the cheapest by far at the time...

KajiKita

Hi All,

Thanks so much for all the input about how to calculate the value of individual small OPs. I think it was the compounding effect I was missing, as well as the original calculation being off! I understand what I am aiming for now and will be able to build my own sheet now (I can never ‘read’ other people’s sheets and follow their logic … 😉). I will punch in a few (bigger, fake) numbers into the MSE calculator to test the sheet once set up, to prove it to myself. 

Apologies for not coming back after everyone gave me so much input and effort to help me. Wednesday I didn’t get home from work until 9pm (entertaining a colleague after work) and then Mr KK’s FiL had his follow up appointment yesterday. I’ve been both tired and ‘head in the shed’ …..
Mr KK says that they didn’t give any sense of timeframe, but they are going straight to palliative care and his gut is that it is a few weeks, a couple of months at most. When symptoms start to kick in they can give him tablets to help with his digestion. Apparently Mr KK Senior hadn’t really taken it in when he was first told so yesterday rocked him back a bit. But being himself, he started reacting all the tales of how many times he had already died - a heart attack, surviving electrocution, bike accidents, falling between passing wagons when running across trains when a kid in WW2! 😳😂 Some of these tales, Mr KK hasn’t heard before! 😊❤️ I said that this must be his 9th life he is finally burning through … 😉 The main thing Mr KK has said is that he doesn’t want pain. They already have a personally allocated nurse to talk to ❤️

Work has been intense this week - I’ve had four team members out and I have had a lot of meetings - been on the run all week! Survived and just about kept up, but it has been intense. Told my boss about my FiL this morning - mainly as a courtesy in case I have to disappear at short notice. He was remarkably kind. Shared that he had lost his father just two years ago, completely without warning. Told me that we should focus on our remaining time - for a non empathetic European bloke, I was quite impressed, bless him. 

I have lots of plans for the weekend, but they can wait until tomorrow! 

I am pleased to be able to say that I have scrubbed the kitchen sink and removed 24 read new scientists from by my bed this evening! Two areas are therefore already less visually irritating than they were 😊

KK

skint_spice

Good news that boss was understanding, that will be a great help.

KajiKita

skint_spice said:

Good news that boss was understanding, that will be a great help.

I must admit I had a hefty wobble in the car on the work on Thursday morning as I wondered if I should have gone to the hospital with Mr KK and family, but it was just impossible this week. As it was his sister wasn’t there - FiL said she didn’t need to be … I think that reflected his lack of understanding of his situation. Mr KK was very clear with his mother that sister would not be excluded again in future! It seemed a bit (unintentionally) cruel to me - Mr KK rang sister and BiL to update them and you could hear the pent up anxiety, projection, anticipation and wondering burst out of them. A bit overwhelming for Mr KK after an intense day. 

KK

beanielou

Jeez. That is sobering & of course a reminder of our mortality & that life is indeed short. 

Glad your boss is understanding. 

Has your MIL registered the severity of the situation ? 

KajiKita

beanielou said:

Jeez. That is sobering & of course a reminder of our mortality & that life is indeed short. 

Glad your boss is understanding. 

Has your MIL registered the severity of the situation ? 

One of the things about the shamanic training I did, is that it makes you look death square in the eye (well, compared to our western culture 😉) - being a part of your own death rites is quite an experience! It does mean I can handle most conversations about death in a way others seem to struggle with. I do wonder if others find me a bit cold and clinical about it though … I find I’m watching myself and how people are reacting to me and what I say, a LOT at the moment ….

Mil? Kind of yes and kind of no … She is a naturally anxious person anyway, FiL was always the earthing rod in the relationship. You can see her circling at it - she tries to face it, starts to be overwhelmed and spin out and in order to hold it together, backs off again, if you see what I mean. I’m impressed that she is being as honest and open to it as she is, to be fair. They are having a fish and chip supper tomorrow night as “He can have what he likes now, it doesn’t matter” in her words ❤️

KK