Actual maths or taking the mick

kaymin

Bubbaclaus wrote: »

I weep for the Irish educational system. Some logic you got there.

You're embarrassing yourself. It's one thing to be no good maths (everyone has their individual strengths), it's another being wrong and unable to admit it (or worse, see it!).

893bet

Bubbaclaus wrote: »

I weep for the Irish educational system. Some logic you got there.

I have far too many letters before my name and after my name so your tears are perhaps warranted. Letters are mine regardless of your sobbing into your maths book.


I also think it’s funny that you are so riled up. I am sitting on my couch, just finished last nights Chinese left over and I have contributed to your blood pressure. What a day to be alive.

StupidLikeAFox

Bubbaclaus wrote: »

I weep for the Irish educational system. Some logic you got there.

No need to be condescending. This is how I (and probably others) understand it, correct me if I am wrong:

Month 0 - July 10th: Drawdown
Month 1 - Aug 10th: Payment of 1 months interest (Jul 10th to Aug 10th)
Month 2 - Sep 10th: Payment of 1 month interest (Aug 10th to Sep 10th)
Month 3 - Oct 13th: Payment of 1 month + 3 days interest (Sep 10th to Oct 13th)
Month 4 - Nov 13th: Payment of 1 month interest (Oct 13th to November 13th)
etc..

So after the first month of the new payment date, we are back to paying 1 months interest.

If you are saying that every month should include the additional 3 days, then surely they are paying 34 days interest every month which can't be right?

893bet

StupidLikeAFox wrote: »

No need to be condescending. This is how I (and probably others) understand it, correct me if I am wrong:

Month 0 - July 10th: Drawdown
Month 1 - Aug 10th: Payment of 1 months interest (Jul 10th to Aug 10th)
Month 2 - Sep 10th: Payment of 1 month interest (Aug 10th to Sep 10th)
Month 3 - Oct 13th: Payment of 1 month + 3 days interest (Sep 10th to Oct 13th)
Month 4 - Nov 13th: Payment of 1 month interest (Oct 13th to November 13th)
etc..

So after the first month of the new payment date, we are back to paying 1 months interest.

If you are saying that every month should include the additional 3 days, then surely they are paying 34 days interest every month which can't be right?

Because it is pushed out 3 days there is a smidgen extra of interest on the capital there each month from that point on. Interest is paid on this smidgen every month there after. 1500 over the mortgage life time? Doubtful. That would mean if you took a two month mortgage break the additional owed would be an extra 60k ish?

AlexisM

Bubbaclaus wrote: »

I weep for the Irish educational system. Some logic you got there.

If you are a product of the Irish educational system then yes, perhaps you should weep.  
I put the numbers into Excel to calculate day by day interest accrual over 24 years.  Moving the payment date from the 2nd to the 5th (for every monthly payment) moves the monthly payment from 1461.38 per month to 1461.51 per month - 13 cents extra per month.  If the payment amount was unchanged, there would be about 43 left outstanding at the end of the 24th year - this has a present value of about 21.  It is a tiny tiny change in the context of a 370K mortgage.

It's as if the mortgage is paused for three days, accrues 3 days of interest - and then the 24 year mortgage starts with that little bit of interest (about €33) as an extra part of the capital.

Pop the numbers into Excel yourself and then maybe come back and clarify the issue for posterity

sydthebeat

Bubba was compounding the already compounded figures

Heres Johnny

Bubba isn't coming back

893bet

Bubbas maths are also demonstrated below in two recent posts

Bubbaclaus wrote: »

Saving 70% currently.

Bubbaclaus wrote: »

Nice idea, but unfortunately in my stupidity all the hard work i put in in my education and career up to this point has put me above the income threshold.

I'm one of those mugs that pays 35% of my income for a room in a house I'm never in because i spend over 50 hours a week working.

Saves 70% and spends 35% on rent and living on fresh air.

Fanny Wank

Heres Johnny wrote: »

Bubba isn't coming back

I don't blame him

Heres Johnny

893bet wrote: »

Bubbas maths are also demonstrated below in two recent posts

Bubbaclaus wrote: »

Saving 70% currently.

Bubbaclaus wrote: »

Nice idea, but unfortunately in my stupidity all the hard work i put in in my education and career up to this point has put me above the income threshold.

I'm one of those mugs that pays 35% of my income for a room in a house I'm never in because i spend over 50 hours a week working.

Saves 70% and spends 35% on rent and living on fresh air.

But he works 125% of a working week
Wonder where the other 20% of his 125% income goes?

Franz Von Peppercorn

I was trying to with out what the two arrogant posters meant. I mean they didn’t tell us.

I too thought it would be a once off payment.

I think that the banks are doing this. They are treating the payment as if it were late every month and calculating the fee at the end. So if the cost is not to be paid up front but at the end - every month the extra three days means that more interest has accrued and the payments being the same less capital is paid off. Every subsequent month the capital hasn’t been paid off as much as originally planned and therefore more interest accrues etc.

This is ludicrous though because they are asking for this compounded payment up front before it could have compounded.

The op could ask to over pay whatever is necessary on the 6th to get the capital to wherever it would have been on the 3rd.

Bubbaclaus

Heres Johnny wrote: »

Bubba isn't coming back

I explained why i was giving up. No point explaining how it works to people who are refusing to budge in their incorrect understandings.

Trying to score brownie points by claiming there's another reason i stopped trying/posting is a bit odd.

vandriver

Bubbaclaus wrote: »

I explained why i was giving up. No point explaining how it works to people who are refusing to budge in their incorrect understandings.

Trying to score brownie points by claiming there's another reason i stopped trying/posting is a bit odd.

Kettle pot black

polydactyl

Jazlyn Red Bather wrote: »

OP I know it's a difficult concept, but have you asked the bank what the story is,?

My guess is that they would know the answer.!!

Thanks for that answer I did multiple times and the person on the phone literally just said “ the amount to pay back will change” no help.

As explained above there is only 3 days extra interest as a one off as every other payment is exactly a month later. They are trying to screw me over or can’t do their own maths I reckon so will make sure I have the Mortgage amt available in the new acc for the first of the month some how.

StupidLikeAFox

Could you ask to move the payment for one month only, then revert to the third for each subsequent month?

Franz Von Peppercorn

Bubbaclaus wrote: »

I explained why i was giving up. No point explaining how it works to people who are refusing to budge in their incorrect understandings.

Trying to score brownie points by claiming there's another reason i stopped trying/posting is a bit odd.

Why didnt you try explain your reasoning before storming off.

lawred2

I've changed direct debit dates on the mortgage and was not hit with any adjustments.

On a fixed rate though if that makes any difference...

Fanny Wank

Franz Von Peppercorn wrote: »

Why didnt you try explain your reasoning before storming off.

He did. As did other people

They were ignored and told they were wrong

893bet

Could some one with a it of excel knowledge could do a spread sheet to calculate what the real cost should be?

kaymin

Fanny **** wrote: »

He did. As did other people

They were ignored and told they were wrong

If Buba was correct with his assertion that:
'there is an extra 3 days of interest accruing on the entire outstanding principal per month every month'

The cost would be alot more than the 1500 the bank quoted.

Using correct maths though it should actually cost only €45 assuming no penalty charges and they can retain the tracker rate for the 3 day loan extension