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Mortgage Q

  • 26-01-2017 11:06am
    #1
    Augusta
    Registered Users Posts: 8 ✭


    We're considering trading up, we bought our house 12 years ago as first time buyers. Our mortgage statement says that we have just over €200k remaining on our mortgage. If we were to sell our house and pay off the mortgage is €200k the figure that we would be repay or would it be less due to savings on interest for paying it off early? Thanks!


Comments

  • #2
    phormium
    Registered Users, Registered Users 2 Posts: 3,345 ✭✭✭phormium


    It would be in or around the figure showing outstanding on the date you pay it off, there are no discounts or reductions in interest for paying off early as interest is not added upfront, it is applied usually monthly to accounts based on the outstanding balance and not on the amount originally borrowed. So you only pay for what you owe while you owe it, you are not charged extra at the beginning based on the term of the loan.

    I am assuming it is a variable rate and not a fixed as fixed usually have a penalty to pay off early whereas variable will not.


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