Does interest rates have much impact as mortgages age?

A

Acegij

Guest
I was wondering does interest rates have as much impact on mortgages as they age. For example on a 25 year morgage when in the first years its mostly interest and later its mosly princible. Say if interest rates change in year one would it have the same effect in year ten when I am paying more princible than interest. I have a tracker mortgage. Forgive if the answer is glaring obvious
 
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Re: Does interest rates have much impact as morgages age?

An online calculator or excel should give you the answer. Take as an example a €100K mortgage at 6% over 20 years. Table below shows impact on monthly payments of rates increasing to 7% at the start of the first year (20 years to go) and year 20 (1 year to go)

MTG outstanding
Year 1Year 20
€100,000.00€8,225.00
6%-€707.29-€707.30
7%-€762.44-€710.87
 
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Re: Does interest rates have much impact as morgages age?

Thanks Guys I am trying to soak this in. Mortgages are out there, very complicated.I am grateful to this site and to the posters
 
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