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mortgage question

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  • 12-12-2008 8:50am
    #1
    dbeermat93
    Closed Accounts Posts: 40 ✭


    Hi

    can someone please explain to me the cost per thousand aspect when working out monthly mortgage repayments. below is an example of one but I have more hope of solving the third miracle of fatima that the solution given below. is he trying to say that 250/1000*4.5% (number of months each thousand euros was borrowed,excluding interest which is 250 months)

    Regards




    This is the cost per month for every thousand Euro borrowed to purchase a property. Assume interest rate is 4.5% and you are borrowing €250,000 over 25 years. Your monthly repayments will be €1,389.58, or another way to express it is the monthly cost for every €1,000 borrowed is €5.56.


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    #2
    IsThatSo?
    Closed Accounts Posts: 988 ✭✭✭IsThatSo?


    If you multiply €5.56 by 250 (as in 250 thousand) you get €1390.

    Cost per thousand means just that and its another way of looking at it :) rather than something that you need to get caught up in. Its more a lending term than a laypersons term. One way it could be useful was if you wanted to compare different lenders and the cost per thousand for your mortgage, but its pretty much the same as comparing your total mortgage repayment per month (in simple terms).


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