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How do mortgages work?

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  • 07-04-2010 12:28pm
    #1
    11amie11
    Registered Users Posts: 58 ✭✭


    so I have no clue about mortgages but basically i want to get one. The house im looking at is 250,000. according to these days interest rates etc how much, roughly, would i have to put down as a down payment? and according to the interest rates how much Also would my monthly repayments be? how long will the loan be, eg whats the average length? im looking to get the longest one possible but not too long that the banks wouldnt do.
    Also say if someone was paying 1000 euro a month. if one month they had 1200 spare, could they pay off the extra 200?

    Any advice, answers, examples would be immensely appreciated.

    Cheers :)


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    #2
    LoLth
    Registered Users Posts: 10,339 ✭✭✭✭LoLth


    Hi,

    this helpdesk is for Boards.ie related issues. I'm movign this thread to the banking forum where you may get a better answer.

    LoLth


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    #3
    Ogham
    Registered Users Posts: 1,844 ✭✭✭Ogham


    You're looking at a 25k deposit (min) then on a mortgage of 225k over 25 years the current repayments would be min 1019 a month (BOI 2.6%). Lenders are very strict on who they lend to - so you will need a secure long term job , good credit history before they will consider you.
    You need to be able to cope with interest rates of at least 4% (rises are on the way) - so that would be around 1200 a month.

    Go into BOI for starters and see what they say. It might be a good idea to look at fixed rates too.

    See the Lowest Mortgage Rates here


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    #4
    NewDirection
    Registered Users Posts: 223 ✭✭NewDirection


    11amie11 wrote: »
    so I have no clue about mortgages but basically i want to get one.
    If you have no clue, you probably shouldn't get one yet. Read up and do your research, don't take this on lightly, its the biggest financial decesion of your like probably.
    11amie11 wrote: »
    The house im looking at is 250,000. according to these days interest rates etc how much, roughly, would i have to put down as a down payment?
    The banks say the will loan 92%, so you'll need 8% of €250,000.
    Realistically, unless you are on very good wages, I'd imagine they'll be wanting you to put up closer to 20% or €50,000 but thats just my opinion.
    Talk to someone in the bank and they'll give you a better idea.
    11amie11 wrote: »
    and according to the interest rates how much Also would my monthly repayments be?
    Depends whether you want fixed or variable.
    We'll need more information from you to answer accurately, and you'll have to educate yourself on the subject before you can give us that info.
    11amie11 wrote: »
    how long will the loan be, eg whats the average length? im looking to get the longest one possible but not too long that the banks wouldnt do.
    The longest the banks will do now is 35 years I'd imagine.
    The shorter the term, the less it will cost you overall, so I'd advise to look for 20 - 25 year term.
    If you cant afford these terms, you're not ready to buy in my opinion. Keep saving and wait until you can.
    11amie11 wrote: »
    Also say if someone was paying 1000 euro a month. if one month they had 1200 spare, could they pay off the extra 200?
    If you are on a variable, you can overpay, if its fixed you cannot.
    Some fixed rates have a provision to overpay slightly. Contact your lender and ask about overpayment options.


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