Mortgages - this might be a stupid question

redt0m · 08-08-2011 3:08pm #1

... but as the old saying goes, if there's something you need, just raise your hand.

Anyway. Ok, here goes:

See if a house is €100,000 (just for sake of argument) and I have, say, €30,000 myself. If I go to a bank looking for a mortgage, am I looking for a mortgage of €70,000, or for €100,000 (and the bank takes my €30,000, thankyouverymuch)?

Do the banks charge interest on the €100,000 or on the €70,000?

Much obliged...

Kosseegan · 08-08-2011 3:13pm

If you have €30,000 keep it in a good bank and mind it carefully. You obviously cannot be let out.

cytop · 08-08-2011 3:16pm

Interest is charged on the amount drawn down... in your case 70k.

quozl · 08-08-2011 3:20pm

You would be looking for the 70K mortgage, and would only be paying interest on the 70K.

ShadowHearth · 08-08-2011 3:24pm

you will pay your 30k to EA ( you or your solicitor ), then bank will give your solicitor 70k so he can pay that to sellers solicitor or EA. then charge intrest on your 70k.

redt0m · 08-08-2011 3:28pm

Ok, thanks for the replies folks.

PCPhoto · 08-08-2011 3:34pm

there are also loads of other fees to pay...solicitors fees etc, it'll cost you another couple of thousand

ShadowHearth · 08-08-2011 3:40pm

PCPhoto wrote: »

there are also loads of other fees to pay...solicitors fees etc, it'll cost you another couple of thousand

1. Life insurance
2. Solicitor fee + 1% TAX
3. Property insurance
4. Property evaluation
5. Engineer report. ( optional, but better to have it )

redt0m · 08-08-2011 4:21pm

Thanks again, aware of extra fees etc - just ignorant on the main payment process and how it worked, having never bought property but gettin to (st)age now where I'm thinkin about it...

Victor · 10-08-2011 3:38pm

In the current environment, it would be useful to hang on to some rainy day money.

redt0m · 10-08-2011 6:45pm

Victor wrote: »

In the current environment, it would be useful to hang on to some rainy day money.

Yeah, I hear ya

the groutch · 10-08-2011 9:08pm

Forget about rainy day money, first you need furnishing money.
Imagine your parents with nothing in it but the fixed appliances. Now think of everything you'd have to buy to get from that to the way it is now.
What seems like a basic list becomes very very long.

redt0m · 10-08-2011 9:23pm

Yeah, but there's always spartan minimalism...

Idbatterim · 10-08-2011 10:31pm

id be very wary of giving up all of the 30k, id put atleast some aside and keep it all in a rainy day fund! the peace of mind youd have for the difference between interest rate on what you borrow and what you could get in a savings account, would be very negligible difference for the peace of mind!

Chipboard · 10-08-2011 10:43pm

ShadowHearth wrote: »

you will pay your 30k to EA ( you or your solicitor ), then bank will give your solicitor 70k so he can pay that to sellers solicitor or EA. then charge intrest on your 70k.

You would only pay the booking deposit to the auctioneer, no more than €6,500. You would not pay him €30,000. In the current environment an auctioneer would be likely to skip the country if you gave him €30,000. On signing of contracts you would pay the balance to make up 10% of the contract price in this case an additional €3,500, and you would pay this via your solicitor. You would pay your solicitor €20,000 prior to the closing and he would draw the €70,000 from the mortgage and use the full €90,000 to close the sale. None of the funds apart from the €6,500 would go anywhere near the auctioneer.

Gee, there's a wealth of knowledge on these boards.

Kosseegan wrote: »

If you have €30,000 keep it in a good bank and mind it carefully. You obviously cannot be let out.

WTF do you know.

Mortgages - this might be a stupid question

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