Mortgage

[SC00BY]

Hi,
I have a 111,000 mortgage over 20 yrs. How do I work out how much I will owe in 5 years
Is there a calculator/ graph available.
I hope someone understands what I'm after.
Regards.
Sx

[dr b]

This looks useful. Be sure to ask for an amortization schedule.

http://mortgagemavin....tgage-calculator.aspx

[buildersmate]

The approximate decreasing balance owing, on a straight repayment mortgage of £111k, at the end of each of 20 years is as follows:

0 1 2 3 4 5 6 7 8
111000 107650 104133 100439 96561 92489 88214
83724 79010


9 10 11 12 13 14 15 16
74061 68864 63407 57678 51662 45345 38712 317
47


17 18 19 20
24435 16757 8694 229

So after 5 years, your mortgage is down to about £92500.
However this is based on an interest rate of 5% - the profile will vary a bit depending on that rate.

[buildersmate]

OK, as usual AB garbles any attempt at copying/pasting data out of MS Excel, but you should be able to fathom out what I did.
The top row represents years 0 to 8, and the numbers just below are outstanding balance of the mortgage at years 0 through to 8. I repeated the exercise through the year 20 to demonstrate that the balance falls to near zero at the end of year 20 - not data you asked for I know. After year 5, the calcualted figure was £92489

[SC00BY]

Brilliant thankyou.
Now.....what if I overpay by £100 a month.

Many, many thanks

[jimmy147]

Haven't time to answer your question - but well done to be thinking of overpaying. It is something I have always done since I took out my mortgage and am always amazed how few people consider it. The "return" (interest saving) is better than anything you'll get from your bank, and then you get the added peace of mind in seeing the principal lowering. I think people don't do it because its such a long term thing which is of course short sighted.

Rather than just paying off a round amount you can turn it around the other way and ask your bank how much it would cost a month say to reduce the term by x year(s). This assumes your not tied to a fixed rate/term.

[whitelady]

hI, if you make one extra payment a year, say for 15 years that will mean your mortgage would finish approx 17 months early.

[whitelady]

Did you know that you can pay your mortgage weekly, if you get paid weekly this is great also reduces term.

[buildersmate]

Here goes - lots of numbers to digest:

0 1 2 3 4 5 6 7 8
111000 107650 104133 100439 96561 92489 88214
83724 79010

5550 5383 5207 5022 4828 4624 4411 4186 3951

9 10 11 12 13 14 15 16
74061 68864 63407 57678 51662 45345 38712 317
47

3703 3443 3170 2884 2583 2267 1936 1587

17 18 19 20
24435 16757 8694 229
1222 838 435 11

0 1 2 3 4 5 6 7 8
111000 106450 101673 96656 91389 85858 80051
73954 67552

5550 5323 5084 4833 4569 4293 4003 3698 3378

9 10 11 12 13 14 15 16 17
60829 53771 46359 38577 30406 21826 12818 335
8 -6574

3041 2689 2318 1929 1520 1091 641 168

The first block of numbers is a repeat of what I ran for you last night, except that the annual interest payments are also shown. The annual repayment amount that I calculated, on which the balance reduces to zero after 20 years was £8900 per annum.

The second block of numbers follows the same format but using an annual repayment figure of £10100 per annum. You will not the rate at which the overpayment drives the outstanding balance down quicker, and the mortgage is paid off in under 17 years (the final figure at the end of the 17th year has gone negative, showing this has happened.

These are approx. right - based on the assumptions I used - an interest rate of 5%, and the model based on annual 'buckets' - some mortgages reduce the outstanding balance each month - not each 12 months, as I have done. But it should give you a reasonably accurate illustration of the impact.

[SC00BY]

Gee wizz.
Thankyou so much for all your help. I really do appreciate it.