Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Mortgages - this might be a stupid question

Options
  • 08-08-2011 4:08pm
    #1
    redt0m
    Registered Users Posts: 346 ✭✭


    ... but as the old saying goes, if there's something you need, just raise your hand.

    Anyway. Ok, here goes:

    See if a house is €100,000 (just for sake of argument) and I have, say, €30,000 myself. If I go to a bank looking for a mortgage, am I looking for a mortgage of €70,000, or for €100,000 (and the bank takes my €30,000, thankyouverymuch)?

    Do the banks charge interest on the €100,000 or on the €70,000?

    Much obliged...


Comments

  • Options
    #2
    Kosseegan
    Banned (with Prison Access) Posts: 987 ✭✭✭Kosseegan


    If you have €30,000 keep it in a good bank and mind it carefully. You obviously cannot be let out.


  • Options
    #3
    cytop
    Closed Accounts Posts: 28 ✭cytop


    Interest is charged on the amount drawn down... in your case 70k.


  • Options
    #4
    quozl
    Registered Users Posts: 3,308 ✭✭✭quozl


    You would be looking for the 70K mortgage, and would only be paying interest on the 70K.


  • Options
    #5
    ShadowHearth
    Registered Users Posts: 22,929 ✭✭✭✭ShadowHearth


    you will pay your 30k to EA ( you or your solicitor ), then bank will give your solicitor 70k so he can pay that to sellers solicitor or EA. then charge intrest on your 70k.


  • Options
    #6
    redt0m
    Registered Users Posts: 346 ✭✭redt0m


    Ok, thanks for the replies folks.


  • Advertisement
  • Options
    #7
    PCPhoto
    Registered Users Posts: 6,584 ✭✭✭PCPhoto


    there are also loads of other fees to pay...solicitors fees etc, it'll cost you another couple of thousand


  • Options
    #8
    ShadowHearth
    Registered Users Posts: 22,929 ✭✭✭✭ShadowHearth


    PCPhoto wrote: »
    there are also loads of other fees to pay...solicitors fees etc, it'll cost you another couple of thousand

    1. Life insurance
    2. Solicitor fee + 1% TAX
    3. Property insurance
    4. Property evaluation
    5. Engineer report. ( optional, but better to have it )


  • Options
    #9
    redt0m
    Registered Users Posts: 346 ✭✭redt0m


    Thanks again, aware of extra fees etc - just ignorant on the main payment process and how it worked, having never bought property but gettin to (st)age now where I'm thinkin about it...


  • Options
    #10
    Victor
    Registered Users Posts: 78,399 ✭✭✭✭Victor


    In the current environment, it would be useful to hang on to some rainy day money.


  • Options
    #11
    redt0m
    Registered Users Posts: 346 ✭✭redt0m


    Victor wrote: »
    In the current environment, it would be useful to hang on to some rainy day money.

    Yeah, I hear ya


  • Advertisement
  • Options
    #12
    the groutch
    Closed Accounts Posts: 16,096 ✭✭✭✭the groutch


    Forget about rainy day money, first you need furnishing money.
    Imagine your parents with nothing in it but the fixed appliances. Now think of everything you'd have to buy to get from that to the way it is now.
    What seems like a basic list becomes very very long.


  • Options
    #13
    redt0m
    Registered Users Posts: 346 ✭✭redt0m


    Yeah, but there's always spartan minimalism...


  • Options
    #14
    Idbatterim
    Registered Users Posts: 17,852 ✭✭✭✭Idbatterim


    id be very wary of giving up all of the 30k, id put atleast some aside and keep it all in a rainy day fund! the peace of mind youd have for the difference between interest rate on what you borrow and what you could get in a savings account, would be very negligible difference for the peace of mind!


  • Options
    #15
    Chipboard
    Closed Accounts Posts: 428 ✭✭Chipboard


    ShadowHearth wrote: »
    you will pay your 30k to EA ( you or your solicitor ), then bank will give your solicitor 70k so he can pay that to sellers solicitor or EA. then charge intrest on your 70k.

    You would only pay the booking deposit to the auctioneer, no more than €6,500. You would not pay him €30,000. In the current environment an auctioneer would be likely to skip the country if you gave him €30,000. On signing of contracts you would pay the balance to make up 10% of the contract price in this case an additional €3,500, and you would pay this via your solicitor. You would pay your solicitor €20,000 prior to the closing and he would draw the €70,000 from the mortgage and use the full €90,000 to close the sale. None of the funds apart from the €6,500 would go anywhere near the auctioneer.

    Gee, there's a wealth of knowledge on these boards.
    Kosseegan wrote: »
    If you have €30,000 keep it in a good bank and mind it carefully. You obviously cannot be let out.

    WTF do you know.


Advertisement