How to understand Annual Mortgage Statement?

H

Harry31

Registered User
Messages
253
I have received a statement for 01.01.2011 to 31.12.2011 & I don't understand it - can anyone help? Some of the details are:
01.01.11 Opening Bal 129,000
20.01.11 Monthly Payment 270.66
31.01.11 Interest Debit 275.77
20.02.11 Monthly Payment 270.66
28.02.11 Interest Debit 249.09
20.03.11 Monthly Payment 270.66

And so it goes on, no Interest debit seems to match any Monthly Payment - am I missing something here?
 
Interest varies monthly depending on how many days in the month, are you on an interest only payment plan?
 
Thanks for the reply wbbs.
We are on interest only, and I'll check the rates because the rate & dates they are effective are on the bottom of the statement. What is really confusing is the none of the Interest debit amounts seem to match up to the payment amounts over the course of the year.
 
Harry31 said:
none of the Interest debit amounts seem to match up to the payment amounts over the course of the year.
Click to expand...

They usually don't.

The amount of the direct debit is set when the interest rate changes or something else changes e.g. TRS.

The amount of interest changes every month depending on the number of days, the balance outstanding etc.

Brendan
 
Good point, which I had overlooked.

But as the balance is probably calculated every day, the balance will rise and fall as interest is applied and as he makes payments. So it could account for a very small difference?
 
Looks simple enough to me:

Annual interest cost is €270.66 * 12 (Tracker of ECB + 1.5%?)

So you are paying a level premium monthly premium but the interest charged in any given month varies according to the number of days in the month.

E.g. January is (270.66 * 12) * (31 / 365), february is (270.66 * 12) * (28 / 365)
 
You must log in or register to reply here.
Menu
Log in
Register