cojomo2 wrote: » Regardless..no exemptions will negatively impact prices. Ill feel happier bidding on a house knowing those bidding against me dont have an exemption.
cojomo2 wrote: » Good. No exemptions = house prices come down. Why anyone would want to borrow more than 3.5 times their salary is beyond me anyway..
bluebottle102 wrote: » Just looking for some advice. I have been approved in principle for X amount and have 10% deposit. I plan on buying a site and building. I've just found out from Bank of Ireland that if I intend on building I also need 10% of the build for any over runs that may occur. Is this standard with all banks offering mortgages? I'm new to this and have never heard of needing this contingency on top of my 10% deposit. Any info greatly appreciated
Blowfish wrote: » Just did a quick check and a FTB married couple on €45,000 each (so, above average, but not unachievable) have a take home pay of €5,702. Rule of thumb is that spending up to 30% on housing is affordable, so a max of €1,710 for them. With a 4.5 exception, that's a house of €475,000 with deposit and HTB included and a mortgage of €405,000. Over 35 years, the cheapest mortgages for that amount for them are in the €1,450 range or 25% of their take home pay, so within the financially prudent range.
brisan wrote: » 35 year mortgage I have never had anything over 20 years Paying till you retire ????
LoonyLovegood wrote: » It depends on if you ask, I was offered mine over 35 years, but chose 20 because I didn't want to pay more interest than necessary.
Creamy Goodness wrote: » There’s no right or wrong way to do this really. Most like to take it out longer on a variable rate so that the first year or two they can get lower repayments and then when they have built more money up put lump sums off. If you go for a lower tenure you’re locked into higher repayments from the get go, and it’s very hard to lower your repayments if something untoward crops up. Both approaches suit different people.
brisan wrote: » Its also very hard to increase your repayments when you get used to having a certain amount of disposable income in your pocket Works both ways It all depends on how disciplined you can be with your finances
Creamy Goodness wrote: » I’ve kept my repayments to 30% of my income as I find that’s a relatively comfortable repayment to length of mortgage ratio.
Bubbaclaus wrote: » It makes financial sense to take out as long a mortgage as possible, and overpay it when you can, rather than tie yourself to higher mortgage repayments on a shorter mortgage.
brisan wrote: » https://www.bankrate.com/calculators/mortgages/amortization-calculator.aspx 300K mortgage over 30 years @2.5% Interest 126,730 Same mortgage same interest rate over 20 years Interest paid 81,530https://www.bankrate.com/calculators/mortgages/amortization-calculator.aspx How many people will do the bit in bold
Bubbaclaus wrote: » You are missing the point completely with those calculations.
brisan wrote: » What point That you can save 45k in interest by paying over a shorter period. If you can afford the higher payments you are always better going for the shorter time period
true-or-false wrote: » The point is that the interest of a 35 year mortgage paid over 20 years is the same as the interest of a 20 year mortgage. The length of mortgage agreed with the bank dictates the amount you've promised to pay back. The amount you actually pay back dictates the interest. So as long as you're on a variable rate with the freedom to overpay, the longer term mortgage will cost the same as a shorter one, but give you the flexibility of paying less when times are tough. This is exactly what I'm doing, because I'm working on a fixed term contract without guaranteed future income. With the pandemic on top of that, I'd rather know my minimum expected payment is as low as possible, in case I find myself out of work for a period. In the meantime, I've been overpaying by about €1000 a month.
mimimcmc wrote: » Sure if that's the case why don't people just save for x amount of years and buy with cash later in life = zero interest rates :pac::pac: different strokes for different folks
brisan wrote: » Missing the point altogether
brisan wrote: » As I said its discipline and you obviously have that My point is most people do not overpay even though they could afford to ,and so pay more interest
Cows Go µ wrote: » Loads of people I know overpay on their mortgage. It doesn't require a huge amount of discipline, I just set up a direct debit and it goes out at the same time as my mortgage. I choose the 35 year mortgage (like pretty much everyone I know who got a mortgage recently). I liked that if something happened I could pay less without issue
Ikozma wrote: » Can anyone tell me when selling a house, let's say you sell for 150,000 and there is 80,000 remaining on your mortgage do you just pay the bank the 80,000 that's left or is there interest/fees or penalty for clearing it, I'm looking to sell and not just pay off mortgage early Thanks.
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