Mortgage Rates € cost per 000

P

paddyl

Guest
Hi,
Just looking at the rates in the Times todat and I see NIB have an offer of a tracker >60% LTV of 3.040 ( apr 3.1 ) and a cost per 000 of 5.570 while
Im with AIB at the moment and the tracker is 3.2 ( apr 3.250 ) and a cost per 000 of 5.640.
Can anyone tell me why the cost /000 is higher on the NIB rate ??

The 3.040 looks very cheap at the monent
 

the cpt on the NIB tracker is less.

On 100K 20yr Mortgage from NIB monthly payment = €556.60

On 100K 20yr Mortgage from AIB monthly payment = €564.66

BTW, the NIB also offer a new switcher to fixed rate service, and will pay €1000 legal costs for a mortgage in excess of €100k.

see [broken link removed]

Their fixed rates are very competitive, when you factor in the possability/probability of rate increases in the coming year of circa 0.5%.

e.g 3.45pc (APR 3.7pc) for 3 year fixed.
 
Excuse my ignorance but what is the meaning of:

paddyl said:
tracker >60% LTV of 3.040 ( apr 3.1 )
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Tracking the ECB interest rates, >60% Loan to value of... What does 3.04 represent????


paddyl said:
and a cost per 000 of 5.570
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I assume that it costs you €5.57 in interest per 000 borrowed?
 
Tracking the ECB interest rates, >60% Loan to value of... What does 3.04 represent????
Click to expand...
The Interest Rate

I assume that it costs you €5.57 in interest per 000 borrowed?
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It is the total monthly cost to repay the mortgage over 20 years.
i.e 300,000 mortgage repayments are 5.57*300= 1,671 less TRS

If it is the interest rate then the interest rate would be 5.57%
 
asdfg said:
The Interest Rate
Click to expand...

Then why the apr aswell?


asdfg said:
It is the total monthly cost to repay the mortgage over 20 years.
i.e 300,000 mortgage repayments are 5.57*300= 1,671 less TRS
Click to expand...

In english it means that you pay 1671 less TRS per month to pay off a 300,000 mortgage in 20 years?
 
Then why the apr as well?
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AFAIK the APR is a legal requirement and covers any additional costs involved in the mortgage i.e. stamp duty, building society/banks surveyor costs and other minor costs.

You also see them where the BS/bank gives a discount on the first year, the apr averages out (after taking into account the above which are fairly small) the cost over the term of the mortgage.
 
The APR is the annual percentage rate and gives you the total amount of interest payable in a year. It is always higher than the intereste rate, the latter is usually calculated on a monthly basis, sometimes weekly or daily. So in month 1 you pay interest of 3.6% on your 100,000 but in month two your pay interest on 100,000 plus interest accumulated, i.e 103,600. You always pay interest on the interest as well, but the APR works out the overall cost per year taking all this interest on interest into account. I hope this makes sense?
 
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