Interest amount on mortgage

Ember999

michaels wrote:

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.

Thanks for that....worked it out now!

Geez! I pay more in interest than some people pay in rent...that's just depressed me

Ember999

ManAtHome wrote:

Ember, you need to multiply by 0.0509 - unless it was a typo your calculation would be for interest rate of 5.9%

You are right, the first time I did I used the 5.9 calculation wrongly, but did it correctly by using the 0.0509 following the advice above by michaels

Thanks for your help x

mrsw

Thanks all. I do realise there is a capital repayment required as well. I am just trying to work out whether its worth paying BTs fees on a credit card to stooze the cash against my offset mortgage.

Ember999

It appears that Manathome has deleted his post? I wonder why, it was so helpful to me....bizarre

Joe_Bloggs

I am all for basic financial calculations being worked through on this site. When things get lumped together in some huge equation people tend to lose interest. It does not help when the symbols on the standard keyboard have many interpretations, some of them mathematical !
@mrsw
If you feel upto it quote your details in round numbers and we can get the calculators out as to what is best. You might be even be better off remortgaging or threatening to do so.

I too wrote a comprehensive and indepth analysis of lisyloo's calculation only to find an entire forum page of discussion that made what I wrote seem like a copy of what was on the screen. I did not submit my post.

J_B. (All puns were unintentional.)