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Paying off mortgage

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  • 30-06-2007 2:32pm
    #1
    radioactiveman
    Closed Accounts Posts: 324 ✭✭


    Hi
    Does anybody know how much your actual monthly mortgage repayment will reduce by if you pay off part of the actual principle of the loan?
    E.g. If you paid back e1000 would this save you the cost per thousand each month (ie e5.50 or so at the moment presuming you're on a variable rate mortgage?).
    thanks!


Comments

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    #2
    shoppergal
    Registered Users Posts: 167 ✭✭shoppergal


    if you punch the figures into www.jeacle.ie it should tell you.


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    #3
    pete4130
    Registered Users Posts: 3,944 ✭✭✭pete4130


    At the least you should be saving the interest you would have been paying on that €1000 on the remaining term of your mortgage.


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    #4
    RainyDay
    Closed Accounts Posts: 6,925 ✭✭✭RainyDay


    First of all, make sure you have a variable rate mortgage. If you have a fixed rate mortgage, there may be no savings in interest from early lump sum repayments.

    If you are making a large lump sum repayment, your bank may be willing to renegotiate your monthly payment amount. However, if it is a more modest lump sum, this will indeed save you interest in the long term, but it will not normally result in a reduction in your monthly repayment.


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