Mortgage Calculator

Eoin

Hi folks,

This is probably a really stupid question, but what is the formula you use to calculate your monthly mortgage calculations? It's been some time since I did all this stuff in school!

For example, a 35 year mortgage for €400,000 at 4.06% equates to €1,768.70 per month, but I have no idea how to get to this figure.

thanks,

Eoin

samo

Try this website

www.mortgages.ie - they have loads of mortgage caluclators and calculate over loads of different terms and fixed rates and all the different lenders etc.

Not sure if what your asking how you work the figure out yourself eg without the use of a mortgage calculator or not but might be something of use there anyway!

Eoin

samo wrote:

Try this website

www.mortgages.ie - they have loads of mortgage caluclators and calculate over loads of different terms and fixed rates and all the different lenders etc.

Thanks for that Samo, that's where I got the figures, but I'd like to be able to do a spreadsheet myself, so I can put in different mortgage lengths, house prices and that kind of stuff in the one place.

Cantab.

www.jeacle.ie/mortgage/

samo

eoin_s wrote:

Thanks for that Samo, that's where I got the figures, but I'd like to be able to do a spreadsheet myself, so I can put in different mortgage lengths, house prices and that kind of stuff in the one place.

No probs, I actually thought might be the case after I made my post but decided 'what the hell' I'll leave it there in case its a handy link for those that might not have come across it before!!

Eoin

samo wrote:

No probs, I actually thought might be the case after I made my post but decided 'what the hell' I'll leave it there in case its a handy link for those that might not have come across it before!!

Well, it appears that it's not too easy to work out, so I may as well stick to that site - it's the best one out there I have to say

cheeky_chick

Hi Eoin, not sure if it is still any good to you. I was searching the internet high and low for a decent calculator. I think I found a fairly decent one here:

It tells you how much interest and capital you will be paying every month of the year.

Helped me out.

http://moneytalk.ie/Tools/LoanCalc.php

Eoin

cheeky_chick wrote:

Hi Eoin, not sure if it is still any good to you. I was searching the internet high and low for a decent calculator. I think I found a fairly decent one here:

It tells you how much interest and capital you will be paying every month of the year.

Helped me out.

http://moneytalk.ie/Tools/LoanCalc.php

Thanks for that - got the morgage sorted out, but the breakdown on that calculator is pretty handy (if a little depressing!).

antoinolachtnai

There is a feature somewhere on excel to calculate this, i think.

Have a look at

http://www.hughchou.org/calc/ss.html

You need to experiment with this a bit, there are slightly different ways of calculating the interest. You need to start with the actual bank rate, not the APR rate.

To be honest, the handiest way to calculate is by finding out from each institution what the cost-per-thousand borrowed is for a particular loan duration. You'll get this figure in Thursday's Irish Times Property supplement, (and probably loads of other places as well). You multiply that number by the number of thousands you want to borrow, and that's your monthly repayment.

Jo King

It is simple to calculate mortgage interest using an excel spread sheet. Take the capital sum outstanding at the start. Multiply it by the annual interest rate. Divide by 365. This gives the daily interest rate. Every three months add on the interest for the past three months. Will be 90-92 days interest. Subtract the three mortgage repayments. This will give a figure slightly lower than the original capital sum outstanding. Repeat the above using the new lower capital balance figure. keep iterating until that figure reaches zero. The mortgage is repaid.
In excel make a table with the months of the year in a vertical column. Put the years of the mortgage in the horizantal axis. Put formulae in each month of the mortgage to calculate the balance outstanding. You can manipulate the lenght of the mortgage using the Goal-seek tool. You can also model changes in the repayment amount and part early repayments.

daltonr

Hi All,

The Moneytalk.ie Calculator above works reasonably well for mortgages, but it's more suited to Personal Loans etc. It doesn't take into account Mortgage Interest Relief etc.

The following calculator (also on Moneytalk.ie) is a little better. It shows mortgage interest relief and adjusts for the different thresholds for First Time Buyers etc.

http://www.moneytalk.ie/Tools/MortCalc.php

One weakness of it is that the relief is based on current levels, it doesn't take into account adjustments to the levels or thresholds. That may be added in the future, but as it is it will give you a pretty good idea of where you stand.

-Rd