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repayment interest?

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  • 18-09-2013 9:48am
    #1
    jack77
    Registered Users Posts: 115 ✭✭


    How do you work out how much of your mortgage repayment is interest and how much is principal, i've looked at my account and it only gives a figure of interest and principal together and then insurance. if i'm paying back 400 a month at 3% p/a say, whats the correct way to work this out?


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    #2
    roro2
    Registered Users Posts: 412 ✭✭roro2


    Total amount oustanding x interest rate = annual interest. Divide by 12 to get the monthly interest component.

    Or, on your statement you should see interest added to your mortgage account every 1/3/6 months. Divide this amount by the number of months since the previous interest charge for the approx. monthly amount.


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    #3
    jack77
    Registered Users Posts: 115 ✭✭jack77


    So is this right, e.g (outstanding) 100000 x (interest rate) 0.03 = (annual interest) 3000 / 12 = (monthly interest)250?


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    #4
    roro2
    Registered Users Posts: 412 ✭✭roro2


    Approximately so.


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    #5
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    roro2 wrote: »
    Approximately so.

    Yeah approximately is right, principal balance will reduce throughout the year slightly so interest will reduce also. So as you go along you have same payment but month on month the percentage of your repayment contributing to interest decreases.


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