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Mortgage (how does it work?)

Morrisseeee · 2012-11-05 14:26:38

Just wondering how a mortgage works, ie. I take out a mortgage for x years, at x interest rate, but on a yearly basis how much am I paying towards the mortgage and how much towards the interest ? Do banks differ on this 'formula' ? Is it a secret formula, or is it well known ? :confused::o

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05-11-2012 3:26pm

#1

Morrisseeee

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Just wondering how a mortgage works, ie. I take out a mortgage for x years, at x interest rate, but on a yearly basis how much am I paying towards the mortgage and how much towards the interest ? Do banks differ on this 'formula' ? Is it a secret formula, or is it well known ? :o

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#2 06-11-2012 2:10pm
andrew

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Moved to the banking, insurance and pensions forum. This is more of a 'banking' question than an economics question I think.

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#3 06-11-2012 2:15pm
Mountjoy Mugger

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Read all about amortisation and take it from there.

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