I have been doing some calculations on on the extra capital payments we have been making to our mortgage since the beginning ( May 2005 ). By dividing the sum paid by the number of months that the life of mortgage was reduced, I have worked out the cost of one month e.g.
€1000/2 (months) = €500. Each €500 reduced one month off final date
These are my results:-
02/05/07 - Cost of one month's reduction €484.00
23/06/08 - Cost of one month's reduction €500.00
07/11/08 - Cost on one month's reduction €666.00
02/06/09 - Cost of one month's reduction €800.00
I spoke to the bank AIB and they couldn't explain exactly how these time reductions are calculated but advised that it is stated in months but if I have paid for 5 months and 3 weeks, then the 3 weeks will be addressed during the final month.
My main issue is that last june we paid €1000 less and got one month extra!
Any comments or thoughts
€1000/2 (months) = €500. Each €500 reduced one month off final date
These are my results:-
02/05/07 - Cost of one month's reduction €484.00
23/06/08 - Cost of one month's reduction €500.00
07/11/08 - Cost on one month's reduction €666.00
02/06/09 - Cost of one month's reduction €800.00
I spoke to the bank AIB and they couldn't explain exactly how these time reductions are calculated but advised that it is stated in months but if I have paid for 5 months and 3 weeks, then the 3 weeks will be addressed during the final month.
My main issue is that last june we paid €1000 less and got one month extra!
Any comments or thoughts