how to calculate 80% of an outstanding mortgage

E

E. Richard

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I want to fix a variable mortgage with BOI. I have 219 k outstanding on a 223 k original mortgage (house valued at 250k at the time in 2009)and have been offered their 3.7 fixed. I would like to calculate by how much I need to decrease my remaining balance so it falls in the bracket under 80% so I can avail of their 3.6% offer for 2 years fixed.( If I can find the money will be another step) I just want to have even a rough idea. Could you please help? It is quite urgent as I am meeting my mortgage branch adviser after lunch.
many thanks
 
Thanks a mil ,but my outstanding balance in 219 k, so maybe it would be 80% of that? Sorry for seeming so stupid but I am just not good with figures.In case it is needed for the calculation: I am now on a split mortgage, circa 88K already warehoused at 2.5%, the main mortgage around 131kvariable. It is that later part that will be fixed. I have a simple Loan calculator but cant seem to find the answer I am looking for...
 
If this is a loan to value below 80% rate then what you need to be is below 80% of the value of the house, not the mortgage as such.

However depends whether the bank takes the value now or value when loan was issued, just ask the advisor they will work it out for you. If going on your original valuation then your total loan outstanding would need to be less than 200k.
 
If you want to fall into the category of a <80% LTV requirement then your current mortgage must be below 80% of the current value of the property. I.e. at 219k mortgage your property would need a valuation of 274k.
 
Thank you to all. I met with the BOI advisor, nice and helpful for a change. He says to reach 79.9%on my outstanding mortgage, it needs to be under 207k. (The figures he used are based on house value of 259k.)But even if I met that shortfall this month, the quarterly interest kicking in in January puts me back over 80%. Is that true?Any advice on what to do there? Thanks a lot
 
Yes the interest being added back to your mortgage will increase how much you owe. So can you do it now? Where are you going to get the money to bring it down to 80%, can you show us those figures to see if this makes any sense.
 
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