How do you calculate interest only?

K

Kerrigan

Registered User
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No knowledge at all in this area so if anybody could please assist or direct me to an online calculator.

E.g Interest + principal mortgage payment each month = €1,900.00

What percentage of this payment is interest only?

Cheers,
K
 
4.4% variable with 20 years remaining. Balance left on loan €300k

Cheers, Dermot.
 
300K@ 4.4% = 13,200 per year or €1,100 per month

The interest element increases slowly as you repay the capital.

But it's the same calculation at any time e.g.

€240,000 @4.4% =10560 = €880 per month interest
 
I calculate that currently your P & I repayment is €1881.79 approximately. Interest would be just over €13,000.00 per year and principal paid off after a year would be just under €9,600.00. I am just giving you a rough breakdown of what you appear to be currently paying. Your interest amount reduces every year as you pay down the principle. Assuming that interest rates stay the same.
Brendan has given you the breakdown for an interest only mortgage.

If you go to the link I gave you and select Financial Calculators and on the drop down menu you will get Amortization Calculator. Input your amount etc and you will see the effect of paying of Principle and Interest. You will find other calculators there as well. You can play around with amounts/terms and rates.
 
Hi Kerrigan. I presume that this query is based on your recent post re unsustainable mortgage. €1,100 pm is still a fair whack of money if you are taking the approach of letting the bank repossess.
 
That's true too 44brendan. Our heads are all over the place. It's just that we would never stay in the property whilst paying nothing. We have lots to think about.
 
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