My monthly mortgage payment is GBP965. Of that, monthly interest varies from GBP714 to GBP770. The annual interest rate 5.64% and the remaining term is just under 27 years, five years fixed.
Clearly the interest is currently much more than 5.64%. What’s the calculation here?
In: Other
Because you plan to make mortgage payments for a long time. If you make larger payments, your mortgage will be paid off sooner. Much less, and it would take forever to pay off the mortgage.
In order to make all payments the same, they start off mostly interest. As the balance goes down (which is very slowly at first) they are more principal. In the last 5 years, the balance is low enough that most of them is principal.
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