I can't understand Karl Jeacle's mortgage calculator

Gordanus

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Please do move this post if I'm in the wrong section.

I have been beating my head against Jeacle's mortgage calculator to no avail.

Five years ago, in 2009, I borrowed 260,500 over 25 years @ 3.7% (then), monthly repayment of €1322.36.

Since then I have run out of the tax credits (or whatever it was called - I was only paying €11xx.xx per month at the time of the commencement of the mortgage). My actual repayments rose to 1409.46 pm, due to interest changes and ending of tax relief.

The mortgage runs until I'm 75 (I'm self-employed), and I have become increasingly concerned about this. I therefore increased my payments by 200 per month and am now paying 1609.46 pm. The letter from the bank confirming the change says that "based on the interest rate currently prevailing (4..58%) the remaining term on your loan is 16 years" - that's till I'm 72 - "If the interest rate changes, naturally the number of payments required to clear the outstanding balance will also change."

A couple of questions: that's not actually reducing the term of the loan, is it? I'd like the possibility of reducing the amount at some stage as the higher amount is quite difficult at the moment.

Secondly, I have about 12K available to me and I could put *half* of this into the mortgage account. Half only because this is the whole of my savings, I still have a child semi-dependent and I want some emergency funds for just-in-case. Should I pay the 6K into the mortgage? What would it do to reduce monthly payments or the term of the loan?
 
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Sorry Gordanus

Your post is very confusing.

The original term of the loan and TRS are not relevant to whatever question you are asking today.

The only relevant factors are
1) The balance owing today
2) The term left from today
3) The interest rate

http://www.loanclc.com/ is better for these types of questions than Karl's calculator.
 
I have been beating my head against Jeacle's mortgage calculator to no avail.
I think the prepayments part of the calculator may be broken at the moment.

However if you go his mobile version that does seem to work, http://m.drcalculator.com/mortgage/ie/

It looks like paying 6k now would knock around 9 months or so off the term.
"If the interest rate changes, naturally the number of payments required to clear the outstanding balance will also change."

A couple of questions: that's not actually reducing the term of the loan, is it?
Each extra repayment will reduce the term slightly however the overall effect is uncertain since if interest rates rise so that your mortgage goes to 1519, then you're only paying 100 euro extra off a month, if interest rates drop you might be paying 300 extra off.

So it's uncertain what paying 1609 will do to reduce the term. If you guaranteed you'll always pay the mortgage + 200, then it's certain the term will be reduced to what they mentioned.
 
Thanks, both of you. I suppose I'm a bit panicked as I need to reduce it substantially as there's no way I'll be able to afford repayments of this sort after I retire, which is looming in 9 years. I'll try that other caluculator.
 
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