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?

Reply to this discussion

Internal reply

Formatting help / Preview (switch to plain text) No formatting (switch to Markdown)

Attaching KB article:

»

Attached Files

You can attach files up to 10MB

If you don't have an account yet, we need to confirm you're human and not a machine trying to post spam.

Keyboard shortcuts

Generic

? Show this help
ESC Blurs the current field

Comment Form

r Focus the comment reply box
^ + ↩ Submit the comment

You can use Command ⌘ instead of Control ^ on Mac