Calculating mortgage interest

hyposmurf

Ive relocated this post to here:
http://forums.moneysavingexpert.com/showthread.html?p=10433773#post10433773
Just a need a moderator to lock this one now.Thanks



How is it done?If I take off the interest from my mortgage at the star of the year from the current balance and multiple by my interest rate,it doesnt give the same figure.
However this would make sense as the interest is calculated monthly and the interest compounds each month, so that it makes it difficult to calculate.
Is there an easy way to calculate the interest.I have also tried dividing the interest by 12 for a monthly rate then adding this monthly interest to my mortgage for each month.(inc the previous addition of interest)
I remember asking my mortgage provider via phone to run me through how it was calculated,they seemed a little dumstruck then passed me onto another person and another person, until they admited they werent sure how to calculate mortgage interest.Which for a bank is quite abismal.

There are calculators about, but I've only come across those that calculate total interest over the loan mortgage period.

Lorne

I have no idea, sorry! It might be an idea to pop it on the mortgage board though, some of the mortgage brokers might be able to answer it for you. I'll watch to see if I can learn something!

hyposmurf

Yeh maybe youre right but I cant move the post now will have to get a moderator to o that for me.
I just realised that I forgot to mention that I'd have to take off my mortgage payment each month.