How too calculate interest saved

P

Pinoy adventure

Registered User
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Hi

We are on a fixed rate with AIB and took
Advantage of the €5000 per year overpayment late last year and early this year so lumped €10,000 off in the past 3 months.
Is there a way we can find out how much interest we knocked off our mortgage.
Both times the repayments have reduced so just trying too figure out the interest saved by doing the overpayments ??

Thanks
 
Pinoy adventure said:
I did but as it does not provide a precise calculation I was a bit confused
Click to expand...

That AIB calculator assumes that you keep your monthly payments the same and will overstate the interest saving.

As you said you have kept the term the same and reduced your monthly payments, try this:

Overpayment Mortgage Calculator | Mortgages | Ulster Bank

Ulster Bank Ireland DAC is no longer accepting any new application requests from personal customers. There are some exceptions to this for existing customers, visit our website for further information.
www.ulsterbank.ie www.ulsterbank.ie

Make sure to select the option "Reduce Your Monthly Payments"
 
@pinoy

It's a meaningless question to calculate the interest saved over the term of a mortgage. Because you are adding today's euros to euros in 10 years times which is like adding apples and grapes.

If you paid €10,000 off your mortgage and the interest rate is 3%, this year year you will save €300.


The reduction in repayments will be less because of the amortisation calculations.

Brendan
 
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