Question for Eric or those in the know

[mogul]

Using the following figures:

260k mortgage over 12 years with a current repayment of approx 2100 per month (capital repayment)
Actual monthly payment made per month £3600
Current rate is .29 over base (tracking)
How many months (assuming rates stay the same) will the mortgage actually take to reduce to £0 based on this amount of overpayment?

I think the term will reduce from 180 months to about 100 months (give or take a few), can you please confirm either way?

Many thanks!

[Eric Mc]

That's not an area I'm "in the know" about.

My best answer would be "a long time".

[mogul]

Eric Mc said:

That's not an area I'm "in the know" about.

My best answer would be "a long time".

I suppose that's a better answer than 'a very long time'!

Thanks

[touching cloth]

12 years isn't 180 months is it? Found this which may help

http://www.channel4.com/money/homebuying/overpayca...

I plugged your figures in and it showed about 5.5 years saved, but the payments didn't actually match yours (i.e initial figure was £2500 not your £2100) so it may not be too accurate.

[mogul]

Sorry, my commercial mortgage is 12 and home is 15 - confused.....duh!

[wattsm666]

It would take 90 months to clear the mortgage, based on 5.79%.

[mogul]

touching cloth said:

12 years isn't 180 months is it? Found this which may help

http://www.channel4.com/money/homebuying/overpayca...

I plugged your figures in and it showed about 5.5 years saved, but the payments didn't actually match yours (i.e initial figure was £2500 not your £2100) so it may not be too accurate.

Using that overpayment calculator and using the correct term and interest rate my repayments are as expected and the term reduces to 7.4 years and saves me a few quid short of £70K!

Thanks for that