[Anonymous]

Hello,
I have been looking at this site for many months and must say how much good info from informative people there is on here…
Anyway,i have a mortgage with caja murcia (5 years) and obviously like
everyone with a mortgage,this year has been difficult with the high interest
rates.So i was looking for a little respite when my mortgage payments for this next year were calculated yesterday.I have a Capital/Interest mortgage,the interest side of the payments has gone down considerably but to my horror the repayment part,which for the last 5 years has been between 280/300 euros per month,has now gone up to €440 which has almost negated the drop in interest,so really i am no better off.Are they allowed to do this? Is it normal or could it be a mistake?

I just wanted some kind of info before calling the bank so i had my facts straight.

If any one has any feedback that would be very much appreciated.

Mark.

[Anonymous]

Hi Mark,

There is not enough info in your post to answer accurately.

For a standard repayment mortgage (so that means each month you pay an amount that is combined of interest and capital repayment) it’s relatively simple to calculate the monthly payment with excel.

The function is PMT (principle, monthly, term) and it will give an exact figure of what you should be charged.

If you post the details here I can do the calculation for you and tell you how much your monthly payment should be.

You need to provide the following

1) amount of loan outstanding
2) term eg how many months left on the mortgage
3) interest rate

[Anonymous]

Hi JP,
Many thanks for a prompt reply,details are…

192 months outstanding on mortgage
€101,150.57 outstanding on loan
Interest Rate is now 2.57%

Regards

Mark

[Anonymous]

€643.10

This figure will vary slightly as the exact method of interest calculation varies between banks. Some may charge a daily interest, some yearly. However the difference between the two methods will only account for a few euros.

So you figure shoud be as above give or 1 or 2 Euros

[Anonymous]

Thanks JP, I will now go and have a beer as that is exactly the amount
sent to me by the bank,at least i wont go and make a fool of
myself down there now.

Many Thanks once again…

Mark 8)

[Anonymous]

Mines a large Rioja !

[Author]

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