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Does your monthly payments go down?

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  • 01-02-2011 12:12pm
    #1
    Sgt Pepper 64
    Registered Users Posts: 9,627 ✭✭✭


    If you took out a 300k mortgage over 20 years on a tracker mortgage.

    Would your payments go down after say 12 years or so?

    Do you pay the interest off first for example?

    thanks - confused!


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    #2
    EoghanConway
    Registered Users Posts: 385 ✭✭EoghanConway


    Monthly payments remain the same apart from the variation in the ECB rate.

    The proportion of interest to principle is simply higher in the early payments, so in your first payment you will pay mostly interest and 20 years later your final payment will be mostly principle.

    Edit:
    There are a lot of calulctors online, search for mortgage amortisation


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    #3
    gaz wac
    Registered Users Posts: 1,330 ✭✭✭gaz wac


    just to jump on this thread, if you wanted to reduce your term and pay off an extra 100 or 200 a month, could this give them a reason to take you off a tracker as you might be changing the agreement ? :)


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    #4
    ravima
    Registered Users Posts: 848 ✭✭✭ravima


    in todays climate, no bank will penalise you for paying more. You only get penalised for breaking fixed rates.


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    #5
    3DataModem
    Registered Users Posts: 3,997 ✭✭✭3DataModem


    gaz wac wrote: »
    just to jump on this thread, if you wanted to reduce your term and pay off an extra 100 or 200 a month, could this give them a reason to take you off a tracker as you might be changing the agreement ? :)

    Never seen a tracker that penalised overpayment.


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