Using a Mortgage Calculator to shorten my mortgage term
With mortgage rates having come down so far, and so quickly recently, I wondered if it was time to change my mortgage supplier. A little looking found an on line mortgage calculator and I did some ‘what if’ calculations. Well the results were astonishing and very gratifying. I could move my current mortgage keeping the current term and more than halve my mortgage loan payments. Other options came to me and I did many more intricate mortgage calculations using the mortgage estimator Moving supplier but keeping my present monthly mortgage payments would pay the loan off in just 49 months as against the 150 months my present mortgage loan has to run, quite wonderful. I tried a number of calculations involving overpaying the mortgage in the short term and taking a loan repayment holiday, not sure this is a good move really because I rather feel that once I’m paying the loan down it is best to keep it down. Other options for the mortgage overpay now and take some of the loan overpayment out in three years time to pay for a new car. This is a good option saving up for a car in the bank gives me a very poor interest rate and even that poor return is taxed.
Shorten my mortgage term
Taking a car loan out at the time I buy the car would surely have a higher interest rate than the mortgage, so you have to think of using overpayments to save for big expenditures, like cars or even holidays!. Turning again to my trusty mortgage calculator I considered some ’split the difference’ options don’t pay the lowest possible monthly amount nor my current loan payment but somewhere in between. These mortgage term calculations gave me a range of mortgage terms ranging from the 49 to 150 months, calculated earlier it was noticeable though how the higher monthly repayments go the term down dramatically. I then considered if I was to move to a house and needed a larger mortgage, using Google I typed ‘mortgage how much can I afford’ and found too many sites, I cut the number of sites down by adding ‘England’ to the query then ‘not buy to let’ then ‘not interest only’. This got me a reasonable number of options to try but some wanted far too much detail, and I had to invent some likely house details. Eventually I got a figure for what I could borrow in a repayment mortgage. Tuning again to my trusty mortgage calculator I got a monthly mortgage payment estimate, but I really thought it a little too high to be comfortable with. In any event I don’t really need or want to move house. So what to do, well move supplier, one has to consider legal costs and fees here of course, keep the current monthly mortgage repayments, actually I rounded them up to next ten pounds above, and watch the mortgage vanish in about five years!