Changing interest rate of mortgage

shahab's Avatar

shahab

11 Jan, 2018 08:16 PM

Hi

Im familiar with entering the data required to set up a new mortgage loan.
But
How do i set up the loan if i have a a fixed number of payments at a reduced rate & then have the remaining of the term at a different higher bank base rate?

Im sure that when the reduced rate runs out i will set it up as a new loan, but in the mean time should i leave the loan at the reduced rate for the full term and manually create a new loan with the new rate with the remaining balance and term?

Also

How do i account for additional monthly overpayments that should reduce the capital of the loan?

Thus

If I'm overpaying and reducing the capital, does this affect the calculations if the remaining term of the loan at the banks base rate is not accounted for?

  1. 1 Posted by metman2012 on 26 Jan, 2018 05:11 PM

    metman2012's Avatar

    I have the same question. If I try and apply the change in the interest rate the calculations are incorrect.

  2. System closed this discussion on 27 Apr, 2018 05:20 PM.

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