Interest Only Mortgage

B

biggerry

Guest
I've just got my investment mortgage to appear on PermTSB's online banking and I've noticed that the amount outstanding on my mortgage has increased!! For example:- on June 30 '04 the outstanding balance on my mortgage was €108165.63. On Dec 31 '04 the amount outstanding had increased to €108181.24 (an increase of €15.61).

My understanding of an interest only mortage is that you only pay the interest on the amount borrowed each month for an agreed period of time and at the end of that time, the amount outstanding is still the same.

Is my understanding correct?
 
A

Alan Moore

Guest
Yes and no....

Interest is charged daily not monthly. Hence small differences. If there were the same amount of days each month you'd be right.
 
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