Mortgage repayment

mdocniall

Wonder if anyone can help me figure this out. I have a tracker mortgage of €150k which I am currently paying interest only on. Shortly I will have to start paying back interest + capital repayments. I rang today to ask for a quotation and they told me it would be €950pm. If I put the following details into a mortgage calculator online I am getting a repayment for €780pm. The details are €150k loan over 20 years at a current rate of 2.25%. Why is there such a discrepancy between the figure I am getting from the bank and the online calculator.

ravima

The years you were on interest only are taken into account in the term. If you had the loan over 25 years and have been on interest only for the past 5, then the entire sum borrowed must now be repaid over 20 years.

mdocniall

Thanks for the response, just to clarify, The original mortgage was for €150k over 25 years. The 5 years of interest only are now up so I assumed how you would calculate repayments is €150k over 20 years at the 2.25% interest rate. These are the details I am putting into the mortgage calculator and getting a repayment of €780. However, the girl in the bank today when I rang said the repayment would be €950.

pjmn

E150k over 20 years at 2.25% = Monthly Repayment of E776.41.

If she is quoting you E950 per month she is using a different variable(s) than you - may be an error on term - are you sure she is using a rate of 2.25% and not a margin of 2.25%?

I'd say give her a call and ask her what amount, term and rate she is using.

Best of luck.

pjmn

Kennie1

FYI... thats an interest rate of 4.52% on 150K over 20 years