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Mortgage Overpayment calculation

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  • 14-06-2021 8:23pm
    #1
    kerdiff
    Registered Users Posts: 156 ✭✭


    Hi I have a tracker Mortgage with PTSB, 15 years left with €154000.00 at an interest rate of 3.25%. I want to make an overpayment of €400 pm for 4 years and in 4 years time pay a lump sum of €50000.00 can someone tell me in 4 years time after the over payments how long will I have left on my mortgage.


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    #2
    wench
    Registered Users Posts: 1,636 ✭✭✭wench


    There is a good calculator here, you can add extra payments down the bottom
    https://www.drcalculator.com/mortgage/


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    #3
    goldenhoarde
    Registered Users Posts: 859 ✭✭✭goldenhoarde


    wench wrote: »
    There is a good calculator here, you can add extra payments down the bottom
    https://www.drcalculator.com/mortgage/

    That's what I was about to post Great tool


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    #4
    Q&A
    Registered Users Posts: 556 ✭✭✭Q&A


    No need for the calculators. The answer is 11 years. A 15 year term will have 11 years to run in 4 years as simple as.

    Remember your monthly repayment will always adjust to to ensure that the outstanding balance will amortise over the remaining term. Of course your monthly repayments will be about half what they were today - assuming no changes in interest rates.

    By the by your tracker rate is very high. Your lender offers slightly better fixed rates. Based on your plan there's about €50k you wont be aggressively repaying it may be worth your while to forgo the tracker and fix this at a lower rate.


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    #5
    L'prof
    Registered Users Posts: 12,027 ✭✭✭✭L'prof


    Q&A wrote: »
    No need for the calculators. The answer is 11 years. A 15 year term will have 11 years to run in 4 years as simple as.

    Remember your monthly repayment will always adjust to to ensure that the outstanding balance will amortise over the remaining term. Of course your monthly repayments will be about half what they were today - assuming no changes in interest rates.

    By the by your tracker rate is very high. Your lender offers slightly better fixed rates. Based on your plan there's about €50k you wont be aggressively repaying it may be worth your while to forgo the tracker and fix this at a lower rate.

    That’s not correct. The term reduces when you overpay, not your monthly repayments


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    #6
    wench
    Registered Users Posts: 1,636 ✭✭✭wench


    L'prof wrote: »
    That’s not correct. The term reduces when you overpay, not your monthly repayments
    Both options are normally available.

    AIB for instance defaults to maintaining the term and reducing the payment, but you can request they reduce the term instead.


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    #7
    L'prof
    Registered Users Posts: 12,027 ✭✭✭✭L'prof


    wench wrote: »
    Both options are normally available.

    AIB for instance defaults to maintaining the term and reducing the payment, but you can request they reduce the term instead.

    Ok. The opposite is true with BOI so


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    #8
    cruizer101
    Registered Users Posts: 3,205 ✭✭✭cruizer101


    wench wrote: »
    There is a good calculator here, you can add extra payments down the bottom
    https://www.drcalculator.com/mortgage/

    I've seen that linked few times before maybe its just me but I don't like that calculator at all, who thinks 4 sliders is a good way of entering an interest rate (I know at bottom there is option to type it in but the main input and the way it is displayed is sliders).

    Much prefer this spreadsheet myself, can make your own copy of it to edit.
    https://docs.google.com/spreadsheets/d/1e5rwonln4E_IQlqI7wckx2ng8Amll14ItTGFhcwZSwk/edit?usp=sharing


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