Mortgage Calculator Questions

W

Wavey

Registered User
Messages
9
Afternoon all,

I have a few questions about Karl Jeacles Calulator.

1. What is the difference between Total Savings and Real Savings?
2. If I pay a once off lump some of 30K my real savings are less than 30K. Why is this?
3. If I pay a once off sum of 30K the savings and reduction in loan term are the equivelent of an increase in my monthly repayments of about €300. Does this sound right?
4. If this is the case then surely it is better to invest the 30K with Rabobank at 5% and only increase the monthly repaymants?

Apologies if I have completly gotten the wrong end of the wrong stick here!

Thanks,
Wavey.
 
1. Real savings adjusts the figures for inflation. You can change the future inflation assumptions if you wish.

2. See 1.

3. Impossible to tell without knowing term and amount of your mortgage, but the calculator never lies. :D

4. See 3.
 
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