Interest amount on mortgage

mrsw

How can I find out what the monthly interest payment is on my mortgage. Not the rate, but the actual amount I am paying. Is this something I can work out myself or should I ask the bank?

YorkshireBoy

Is it an interest only or repayment mortgage?

lisyloo

The calculation is quite easy it's

capital at beginning of month * interest rate * number of days in the month divided by 365

Of course if you make a payment during the month then it will change.

mrsw

It's a repayment mortgage.

Lisyloo, can you clarify what you mean by capital? Is that the amount I owe

Ember999

lisyloo wrote:

The calculation is quite easy it's

capital at beginning of month * interest rate * number of days in the month divided by 365

Of course if you make a payment during the month then it will change.

Don't understand this...do you mean 'times by' ie: (x) is that what * means?

lisyloo

Yes capital is the amount you owe (if you want the figure to be exact you'd need to know the correct balance).

Here is an example

capital £100,000
interest rate 5%
month is July - 31 days

£100,000 X 0.05 X 31 / 365 = £424.66

where X is multilplication and / is division

Obviously if there is a payment during the month then this will MAY make a difference (depending on whether you have annual, monthly or daily interest calculation).

Also just to point out, lenders do not take the exact amount from you each month as that's too much admin, but the exact figure does vary depending on the number of days in each month (and occasionally each year).

Ember999

lisyloo wrote:

Yes capital is the amount you owe (if you want the figure to be exact you'd need to know the correct balance).

Here is an example

capital £100,000
interest rate 5%
month is July - 31 days

£100,000 X 0.05 X 31 / 365 = £424.66

where X is multilplication and / is division

Obviously if there is a payment during the month then this will MAY make a difference (depending on whether you have annual, monthly or daily interest calculation).

Also just to point out, lenders do not take the exact amount from you each month as that's too much admin, but the exact figure does vary depending on the number of days in each month (and occasionally each year).

sorry for bugging you, just trying to work out my interest here

what do you do if interest rate is 5.09 %

would I do....100,000 x 0.059 x 31 / 365 ?

mrsw

Yes, that's right ember, assuming you owe 100K.

Thamks lisyloo, that's really great

Ember999

mrsw wrote:

Yes, that's right ember, assuming you owe 100K.

Thamks lisyloo, that's really great

Thanks MrsW and Lisyloo.....I'm not the best at maths at the best of times LOL :rotfl:

I need things in basic black & white as I am thick-as-a-chip in maths LOL

Joe_Bloggs

The interest is one thing but with a repayment mortgage you have to pay more to reduce the capital each month. Otherwise the loan will go on forever. For the £100K 5% example you would have to pay an additional £168 in capital repayments to pay the loan off in 25 years. Next month the capital is £99832. Over time the interest paid goes down and the capital paid every month goes up for regular equal monthly repayments.

J_B. (Figures from HSH home buyers calculator suite)

@Ember999
5.09% can be written as 0.0509 for calculation purposes.

michaels

Ember999 wrote:

sorry for bugging you, just trying to work out my interest here

what do you do if interest rate is 5.09 %

would I do....100,000 x 0.059 x 31 / 365 ?

If the rate is 5.09 (not 5.9) then the calc is:
100,000 x 0.0509 x 31 / 365
If you have a repayment then there will also be a capital payment, this is normally calcualted to keep your payments constant for the term of the morgage, at the start when the capital figure is high most of each months payment is interest, as the capital is paid back the capital and therefore interest amount reduces and more of the monthly payment goes into paying off the mortgage.