How to work out mortgage repayment?
Can someone explain to me how to calculate mortgage repayments?
Asked on Sep 8 2016,
Home Finance in Ipswich |
When it comes to mortgage repayments, there are a lot of variables that come into play. An easy way to check is to set up a meeting with a broker, or plug your details into Zoopla’s online mortgage repayment calculator.
To give you an overview of a mortgage, you’ll be required to put a deposit down for a house, which is a minimum of 5% of the total cost, and then borrow the rest of the amount from a bank, which is your mortgage. There are different types of mortgages, however, one of the most common is a repayment mortgage. This lets you pay back the remaining amount, as well as the accumulating interest over the duration of the loan, which can be up to 30 years long. Currently, the interest rate is about 4-5% of your total loan, however this can fluctuate over the duration of your mortgage. If you have access to all this information, you should be able to calculate your mortgage.
Each month you’ll be required to pay back an agreed amount of the mortgage, however it’s also possible to pay more than that set amount. Doing this will decrease the duration of your mortgage, helping you to pay off your house earlier than expected and saving you on interest fees.
Web reference: http://zo.op.la/KSUBGQ
Answered on Mar 27 2018,
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