Mortgage interest rate calculations

S

stuckinflat

Registered User
Messages
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I'm trying to figure out (not too successfully) the difference of the interest rates over a lifetime of the mortgage.

Let's say I'm looking to get a €100,000 mortgage, BOI are offering it at 4.3% where I can get the same with KBC for 3.95%.

How do I calculate how much less interest I would pay over a lifetime of a 30 year mortgage if I were to go with KBC instead of BOI?
 
The easiest way would be to multiply the monthly repayments by the term of the mortgage for both lenders.
360 x Monthly repayment amount = Total amount paid over lime time of mortgage.

Subtract from this the amount borrowed and you know the total interest.
 
Thanks fearbeag. We only have the mortgage approval with the monthly payments from one of the banks, we have not applied with the second one yet. I was just curious to see what the differences between the two interest rates would be in advance while waiting to go through the process.
 
You are asking the wrong question.

The best question to ask is "How much less will it cost me this year? "
€100k @ 0.35% is €350 per year.

With your question, you are mixing up euros at 2014 values with euros at 2044 values. That is like adding 350 grapes to 350 melons and getting an answer of 700.

You could ask a more complicated question: If I make the Bank of Ireland payments to KBC, how much time will I knock off the mortgage. But even that is a very hard concept to understand.

If someone is choosing between two houses to rent, they don't say House A will be €30,000 cheaper over 30 years. They say that House A is €1,000 cheaper per month.

With a mortgage, you are simply renting money. The longer you rent it, the more rent you pay.

Brendan
 
Stuck in Flat.
This might help .

k100 @4.3 over 360 mths = 495 per month.
K100 @ 3.95 over360 mths = 475 per month
...........................................
Difference over 360 = 20 @ 360 = 7,200 .
.........................................................
I am working off iir% so might be a very slight difference.
 
Point taken Brendan,

(I think though the poster is using the (7200) as an attempt to compare.)

To poster.
Just get the monthly payments from lender and if today one lender giving the same conditions is less dear than the other then go with that lender.
 
Thanks guys ! Obviously we'll be going with the bank that offers the lowest interest rates, I was just curious to see how it compares in years to come. Reading through your posts I know realise it's not possible to calculate the possible difference in years to come.
Thanks !
 
Sorry if I am using this thread for a different type of Mortgage Interest Calculation question.

Can someone give me a simple calculator which will calculate the actual interest for tax purposes in each year in the following circumstances. I am borrowing from a relative. It will be repaid on a monthly basis like a normal mortgage with the capital reducing accordingly.

Loan. €50,000.00

Term. 7 years

Interest Rate. 3%.

Approx monthly repayment. €.660.67.

The interest will be declared by the other party to Revenue and I will be claiming the appropriate relief.
 
Thanks newirishman. Investment Mortgage. Interest Rate agreed at at a fixed rate of 3% for the term. Sorry did not make myself clearer
 
Thanks Brendan and a Happy Christmas to you and all the readers and contributors to AAM. Thanks for all the help and information during the course of the year. I hope next year is better for all those in difficulty.
 
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