Mortgage calculator
Mortgage Calculator
Enter the mortgage loan (no commas please), mortgage interest rate (for example 2.99) and term required (for example 25) The calculator provides the capital and interest payments and also the interest only payments. Most people will arrange the mortgage on their home on a capital and interest basis
The calculator is provided as a guide to your mortgage payments. Your actual monthly payments will be shown on your mortgage illustration
Why is the interest only payment lower?
The interest only figure just pays the mortgage interest! So after 5 or 10 years you will still have the same mortgage outstanding
Why doesn't the interest only payment change when I change the term?
With an interest only mortgage you are just paying the interest back to the lender . The interest will stay the same providing the interest rate does not change
Why do most people choose a capital and interest mortgage
Most people will want their mortgage to be paid off by the end of the mortgage term
For example, consider a mortgage loan of £300,000 on a mortgage fixed rate of 3% over a term of 25 years
You could take out a capital and interest mortgage with a monthly payment of £1423 or
You could take an interest only mortgage with a monthly payment of £750
In 25 years time the capital and interest mortgage would be paid off.
But in 25 years time, the interest only mortgage of £300,000 would still be outstanding