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Interest Only Mortgage?

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  • 16-11-2011 7:14pm
    #1
    angeline
    Registered Users Posts: 901 ✭✭✭


    I have a mortgage of 1600.00 per month over 30 yrs. I am now in to the 5th year. I am wondering how much I might be paying if I took a temporary break and opted for an interest only mortgage.


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    #2
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    angeline wrote: »
    I have a mortgage of 1600.00 per month over 30 yrs. I am now in to the 5th year. I am wondering how much I might be paying if I took a temporary break and opted for an interest only mortgage.

    It may reduce by a few hundred or so. During the early stages of a mortgage your monthly payments are made up predominantly of interest due to the principal balance being high.

    if you check the last statement you got from them. Even if it was issued early this year as is usual it would at least give you an indication of how much interest is being paid each month and thus a rough idea of what you would be paying on interest only.

    Or call the bank and ask how much interest was included in last payment made. Also outline your plans.


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    #3
    killers1
    Registered Users Posts: 1,443 ✭✭✭killers1


    Multiply the balance outstanding by the interest rate & divide by 12 to get the monthly interest only figure. The term is irrelevant when int only is being calculated..


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