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Mortgage Overpay

karlitob · 2021-09-20 16:01:35

Hi all When you overpay on your mortgage, does that bring down the principal only, or is there some convoluted calculation which includes principal and interest. If there is some calculator you're aware of that would be helpful. Many thanks.

20-09-2021 5:01pm

#1

karlitob

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Hi all

When you overpay on your mortgage, does that bring down the principal only, or is there some convoluted calculation which includes principal and interest.

If there is some calculator you're aware of that would be helpful. Many thanks.

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Comments

#2 21-09-2021 7:39pm

The J Stands for Jay

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It comes off the principal.

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#3 21-09-2021 7:40pm

Cyrus

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https://www.boards.ie/discussion/comment/117921127#Comment_117921127

Generally you need to specify your preference to the bank

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#4 21-09-2021 10:12pm

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It comes off the total outstanding balance. This is the initial loan plus interest accrued minus payments made to date. The reduction in your total outstanding balance will reduce how much interest you're charged going forward, because you're only charged interest on the outstanding balance.

I use the AIB calculator, but I reckon it has a margin of error. https://aib.ie/our-products/mortgage/mortgage-overpayment-calculator

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