Calculation of Mortgage Repayments .
We have carried out some mortgage payment calculations and worked out how much the monthly payments would be on different mortgage amounts taken out over 30 years using interest rates of 3% and 2.7% .
You can see the banks with the current best mortgage rates in Ireland here.
@ 3% over 30 years
@ 2.7% over 30 years
The figures are based on a repayment mortgage .
When you are working out if you can afford to pay a mortgage – you should consider if you could afford to keep up the monthly repayments if your income was to fall or your outgoings increased.
Adding 5 years to a mortgage term (30 years instead of 25) – will reduce the monthly payments but it will increase the total amount you repay overall.
For example – on a €250k mortgage at 3% over 25 years you will end up paying €105,658 in interest on top of the €250,000 capital.
If you extend this to repay over 30 years you will end up paying €129,444 in interest on top of the €250,000 capital. That’s an extra €23,786!
On the Bank of Ireland website they have a mortgage calculator where you can see how much you might be able to borrow and exactly what your monthly payments would be.
First Time Buyers: You might be eligible for the Help to Buy Scheme
Repayment Mortgages – the monthly repayment is made up of two parts: An interest payment on the loan and a capital repayment. At the end of the mortgage term, you will have paid in full for the house. In the early years, most of your repayments will go toward paying off the interest on your mortgage. But as your mortgage reduces, the interest part of the repayment goes down. So as time goes on, more of your monthly repayments go toward paying off the capital.
You might also be interested in How Much of a Mortgage Can you Get in Ireland.