My Excel mortgage spreadsheet

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  • Locoblade
    Locoblade Posts: 795 Forumite
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    Hi Dave

    Im probably missing the point but can you explain exactly what the present worth figure tells you as the average mortgage payer? I can see why you might want figures to compare the amount of interest saved on overpayments against the amount you'd earn by putting that money into savings, is that effectively what you mean?

    cheers
    My Excel Mortgage Calculator Spreadsheet: http://forums.moneysavingexpert.com/showthread.html?t=1157173
  • Locoblade
    Locoblade Posts: 795 Forumite
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    Version 1.3 now uploaded

    http://www.locostfireblade.co.uk/Downloads/Mortgage%20Schedule%20Calculator%20v1.3.xls

    There's no huge changes in this one, Ive just added early repayment charges (ERC) and exit fees into the equation so you can see the complete cost when considering remortgaging again.
    My Excel Mortgage Calculator Spreadsheet: http://forums.moneysavingexpert.com/showthread.html?t=1157173
  • _dave__4
    _dave__4 Posts: 49 Forumite
    Locoblade wrote: »
    Im probably missing the point but can you explain exactly what the present worth figure tells you as the average mortgage payer?

    I'm just trying to get a handle on how much the mortgage costs overall, in "today's money". What I mean is, if prices and wages generally increase each year, then £100 in 20 years time will be "worth" less than £100 now (I guess it'll be a smaller proportion of my wages then, and would buy less than £100 will today). If inflation is high enough, then £100 in 20 years time could easily be worth less than £50 today.

    For instance, £600 each month for the next 15 years (£108,000 in total), might buy the same number of loaves of bread (or pints of milk) as £400 each month for the next 25 years (£120,000 in total). In that case, I'd tend to think of a mortgage at £600 a month for 15 years as the same cost as a mortgage for 25 years at £400 a month, even though the second one "looks" like it costs £12,000 more! (The payments on both would buy the same amount of bread or milk...)

    Does that make sense?

    Locoblade wrote: »
    I can see why you might want figures to compare the amount of interest saved on overpayments against the amount you'd earn by putting that money into savings, is that effectively what you mean?

    I think that's one of the two suggestions on the online calculator that I mentioned (their description '(B)'), but I was more thinking about allowing for inflation (their description '(A)').
  • Locoblade
    Locoblade Posts: 795 Forumite
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    Hi Dave

    Yup it makes sense now, I think it would need a fair bit of calculation to get it working though. If I could be convinced that it would be of interest to others as well as you I'll put it on the list to look at, but Im not entirely sure many would have a need for that information or know how to interpret it?

    cheers
    My Excel Mortgage Calculator Spreadsheet: http://forums.moneysavingexpert.com/showthread.html?t=1157173
  • bubblesmoney
    bubblesmoney Posts: 2,156 Forumite
    First Anniversary Combo Breaker
    finally figured out how to nominate this post for the 'post of the month award' and have nominated this thread for the award. see link i do hope anyone who found the calculator saved them money and time would spare a few seconds to nominate his post for the 'post of the month award for september'
    bubblesmoney :hello:
  • _dave__4
    _dave__4 Posts: 49 Forumite
    Locoblade wrote: »
    ... If I could be convinced that it would be of interest to others as well as you I'll put it on the list to look at, but Im not entirely sure many would have a need for that information or know how to interpret it?

    Thanks Locoblade.

    I'd have thought that most people would understand figures in "todays" money easier than in "future" money -- for instance, if someone said your pension in 40 years time could be £50,000 per year (!yippee! - sounds great!), but that was equivalent to £10,000 in todays money, which do you think most people would find easier to interpret?

    When you add up the cost savings from overpayments by just summing all payments, then the total is a mixture of "todays" money and "future" money. I really find that quite hard to interpret, myself!
  • 1978
    1978 Posts: 80 Forumite
    this will come in handy when i change next year also.

    many thanks.
  • Locoblade
    Locoblade Posts: 795 Forumite
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    Dave, I'll give it a go and see how it goes, I can see the logic / benefit of knowing that info, just needs to be presented in a way that doesn't confuse more than it enlightens :)
    My Excel Mortgage Calculator Spreadsheet: http://forums.moneysavingexpert.com/showthread.html?t=1157173
  • Kavanne
    Kavanne Posts: 5,093 Forumite
    Locoblade, really amazing, thank you thank you!!
    Kavanne
    Nuns! Nuns! Reverse!
    'I do my job, do you do yours?'
  • Locoblade
    Locoblade Posts: 795 Forumite
    Name Dropper First Post First Anniversary
    Thanks BTW to BUBBLESmoney for nominating me for post of the month, and to the others who have also put comments on that thread, much appreciated :)
    My Excel Mortgage Calculator Spreadsheet: http://forums.moneysavingexpert.com/showthread.html?t=1157173
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