Mortgage Interest Question

kop77

Got my mortgage statement today and I'm confused about something, I have a €130,000 loan over 35 years and paying 495.97 a month but I'm been charged interest every three months, which I know is normal but are the figures correct. I paid interest of 669.74 in June, 651.02 in Sept & 639.63 in Dec on top of the 495.97 a month,

Thanks,

Almost forgot 2.1 tracker for the last year or so but was on a 4. something prior for 2 years,

dotsman

kop77 wrote: »

Got my mortgage statement today and I'm confused about something, I have a €130,000 loan over 35 years and paying 495.97 a month but I'm been charged interest every three months, which I know is normal but are the figures correct. I paid interest of 669.74 in June, 651.02 in Sept & 639.63 in Dec on top of the 495.97 a month,

Thanks,

Almost forgot 2.1 tracker for the last year or so but was on a 4. something prior for 2 years,

The interest is going down slightly reflecting the fact that you are, bit by bit, paying off the capital. Less Capital, less interest charged to the account. The figures seem alright to me. If you check your records, assuming you have the same rate as when you started, the first lot of interest to be charged would have been would have been €682.50 approx ((130K * 2.1%) / 4). Your repayments remain constant throughout the life of the loan, only possibly changing in line with ECB rate increases/decreases. As time goes by, the interest being charged will be less, thus your repayments will be reducing the outstanding capital at a higher rate.

kop77

Sorry, its 30 years not 35, my mistake. Had a 4.79 fixed for the first 2 years paying €680.92 a month and interest of an average 1521 every quarter. 2.1% tracker since sept 09 with the figures in my first post.

dotsman

kop77 wrote: »

Sorry, its 30 years not 35, my mistake. Had a 4.79 fixed for the first 2 years paying €680.92 a month and interest of an average 1521 every quarter. 2.1% tracker since sept 09 with the figures in my first post.

Yup, those figures sound right.

kop77

So as the years go on the interest charged to me every quarter will go down letting me chip away more at the balance,

Thanks guys.

dotsman

kop77 wrote: »

So as the years go on the interest charged to me every quarter will go down letting me chip away more at the balance,

Thanks guys.

Correct.

...and no worries.