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The mortgage calculator

GaryBC
GaryBC Posts: 462 Forumite
Part of the Furniture 100 Posts Name Dropper Combo Breaker
in Mortgages & endowments
I've heard it said that the Mortgage calculator on this site doesn't use compound interest in its calculations so under-reports the resulting monthly repayments. 
Is this true? 

Comments

  • BikingBud
    BikingBud Posts: 2,765 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Why not check it?

    http://www.locostfireblade.co.uk/spreadsheet/Index.html

    Your life is too short to be unhappy 5 days a week in exchange for 2 days of freedom!
  • ACG
    ACG Posts: 24,859 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Google amortizization calculator. 
    Most of them have the dollar sign, but imagine the pound sign, the figures are usually spot on. 
    I am a Mortgage Adviser
    You 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.
  • GaryBC
    GaryBC Posts: 462 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    BikingBud said:
    Why not check it?

    http://www.locostfireblade.co.uk/spreadsheet/Index.html

    £100k at 4% over 12 years the difference in interest payments between the two is c£40! 
    For its ease of use I'd accept an 'error' of less than 3p a month. 

  • GaryBC
    GaryBC Posts: 462 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    ACG said:
    Google amortizization calculator. 
    Most of them have the dollar sign, but imagine the pound sign, the figures are usually spot on. 
    100k over 12 years at 4% it's within £12 of the MSE calculation. 

    Close enough! 
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