I am going to aks a question that probably has been asked before but never in terms as simple as this.
My Ethos going forwrd in life is that I am no longer going to accept a Mantra or a saying or a term that has been used for such a long time it is now a fact without fully investigating it.
The Term in this instance is
"Because mortgage loans are calculate with APR interest then all the interest is front loaded and therefore the prinicipal does not decline in the early years"
I have heard that term everytime I have questioned my mortgage repayments. What does it mean? I don't have a clue and have spent 2 weeks on Google after spending 3 months trying to get my mortgage provider to engage with me and still am none the wiser.
At a high level I have a €312,500 mortgage over 35 years that I have been paying for 8.5 years (24.5% of the lifetime of the loan has passed) yet only 14% of the prinicpal has been paid.
Does that sound right. The rate was a variable rate for the first 3.5 years swapping to a tracker rate for the last 5 (I am assuming that does not matter)
Please don't point me to an APR calculator. I guess without knowing the exact interest rate breakdown it is a hard thing to quantify.
None the less it is a worthy question. How many of us are paying over 50% of our total income on this payment that we know next to nothing about ?
My Ethos going forwrd in life is that I am no longer going to accept a Mantra or a saying or a term that has been used for such a long time it is now a fact without fully investigating it.
The Term in this instance is
"Because mortgage loans are calculate with APR interest then all the interest is front loaded and therefore the prinicipal does not decline in the early years"
I have heard that term everytime I have questioned my mortgage repayments. What does it mean? I don't have a clue and have spent 2 weeks on Google after spending 3 months trying to get my mortgage provider to engage with me and still am none the wiser.
At a high level I have a €312,500 mortgage over 35 years that I have been paying for 8.5 years (24.5% of the lifetime of the loan has passed) yet only 14% of the prinicpal has been paid.
Does that sound right. The rate was a variable rate for the first 3.5 years swapping to a tracker rate for the last 5 (I am assuming that does not matter)
Please don't point me to an APR calculator. I guess without knowing the exact interest rate breakdown it is a hard thing to quantify.
None the less it is a worthy question. How many of us are paying over 50% of our total income on this payment that we know next to nothing about ?