I ask because i have just used a mortgage calculator online and they have worked out this:
To borrow £100,000.00 over a term of 15 years at a monthly calculated interest rate of 4.89% gives:
Repayment Mortgage Monthly Repayment £785.08
and
Interest Only Monthly Repayment £407.50
Thanks for any help.
You will probably be not too surprised to learn, that in that feather-bedded, backward industry called banking, they are using different formulas to calculate the same things and percentages mean different things to different people.
I have put in 3 equations in my calculator and usually one of them agrees with the figures quoted by lenders.
The chaos is due to the fact that in the days before the introduction of electronic calculators, it was only practical to use approximate formulas which were easier to calculate. Some banks still use them while others have changed to the mathematically correct formulas.
The incorrect formulas survive because the Americans (who as you know are the most backward people on Earth, except in war machines) use them. Also Excel. As you know the Americans still use bushels and gallons and barrels etc.
(I suppose I had better get ready now for a flood of insults from the country of free speech, if it is not an oxymoron)
It’s a long complicated formula, but each payment made is basically your current principal times your current monthly interest rate. Part of the payment goes to principal, the rest to interest. As you pay on the loan, more goes to principal because less goes toward interest because you have a lower balance to pay interest on. I can’t think of the formula right off, but I’m sure you can google it.
You did it the right way, though – using a mortgage calculator. LOL! Way too complicated to use the formula.
References :
THEY JUST SIT IN A OFFICE AND THINK UP SOME RIDICULOUS FIGURE FOR YOU TO FIND FOR THE NEWT TWENTY FIVE YEARS
References :
Use this to calculate your mortgage. On excel Spreedsheet you can go to creat a new workbook. Then you can click Loan Amortization you can fill it out and it will help with know what your payment will be with what rate you choose Or go to the link below.
References :
http://www.bankrate.com/brm/mortgage-calculator.asp
You will probably be not too surprised to learn, that in that feather-bedded, backward industry called banking, they are using different formulas to calculate the same things and percentages mean different things to different people.
I have put in 3 equations in my calculator and usually one of them agrees with the figures quoted by lenders.
The chaos is due to the fact that in the days before the introduction of electronic calculators, it was only practical to use approximate formulas which were easier to calculate. Some banks still use them while others have changed to the mathematically correct formulas.
The incorrect formulas survive because the Americans (who as you know are the most backward people on Earth, except in war machines) use them. Also Excel. As you know the Americans still use bushels and gallons and barrels etc.
(I suppose I had better get ready now for a flood of insults from the country of free speech, if it is not an oxymoron)
References :