Time to see how much interest payable is decreasing each month

On my loans, interest is payable monthly.

I was thinking, I should hopefully be able to see how much my regular interest repayments are decreasing this month. Because July and August have the same number of days.

This is also true of December and January. Every other month doesn't have a neighbouring month with the same number if days so its hard to see an immediate decrease in interest paid.

However, weekend dates can come into play too. Anyway, let's see... (Edit: CBA also processes on weekends! Macquarie doesn't though).

I do feel i'm on the home stretch of paying off the PPOR Loan and the repayments are coming down quite quickly. I think i'm spending less in other areas, making it possible. Thanks Covid pandemic.

 

Glad to hear you're getting the balance down.
Do you have an offset account to factor in? little bit different if using the offset as daily transaction account too as Interest is calculated daily, charged monthly

 

I was slightly sceptical about establishing an Offset factuality as I just couldn’t envisage filling it as I like to invest in other asset classes.

Anyway, exactly 10 months later and got my first statement for the first month of my Offset account being full and very happy with the difference it’s making/ going to make. Would recommend to anyone that can save a surplus from their income and/ or has savings they can park there.

 

Yes, got the offset account.

 

I KNOW I'm spending a lot less. I'm basically a hermit these days, which means the empty offsets from the purchase of the potentially new PPOR, are slowly gaining a little.

 

You could dump your statements into excel and calculate your interest quite easily without having to wait for months with the same no. of days.

If you’re not a numbers person, you can also put it very easily into a simple chart or graph that can help visualise how you’re tracking too.

Good luck!

 

This is what I do. I know exactly how much interest is going to be paid each month, well in advance, generally within $10.

 

Tofay is rhe day when the money is supposed to come put of my account. Still hasnt happened yet!

I am an analytical numbers person, (top 1% of maths comp and topped the school (>1000 students) for the maths comp), but i'm just waiting to see the numbers

I think it will be a nice surprise!

 

I'm a numbers person too. I get phases when I track, track, track. Then I get bored of it. At the moment I've got a spreadsheet that I update at the start of each month, tracking how much my net worth has increased.

 

I have been able to see its down MoM, but not quite as big or drastic as I would like. Ah well.

 

I have a friend diligently paying down his mortgage. He only checks the balance once a year when the statement comes.

 

Net worth is down ......or loan balances are down?

 

I was hoping interest paid would be down more.
Everything generally tracking well though

 

I have been told the first 20 years are the worse.

I am surprised that as a numbers person your spreadsheet doesn't indicate the amount of interest payable per year. You can then be suitably horrified at how much interest is paid in the first 15 years compared with the remaining 15. Hmm, on second thoughts, better not.

 

Well, we bought this place at the end of 2015, but we smashed down the loan of the previous PPOR. Interest is currently $11.50/day. Last fin year interest was approx $4,500.

The first place I bought, I found that really hard. So much interest, and not much principal paid down. Now, interest rates aren't a worry.

I was just hoping the amount of interest this month was going to be lower...
Btw, I could sell a shares portfolio to get there... some of those shares are not paying a dividend this year.... and will share prices move upwards on the next couple of months? I'm actually pessimistic on that. Not till we get ourselves out of this pandemic.

 

Awesome. Let me know when you intend to sell so I can get out before you do. Alternatively, the contact details of the Trustee of the SMSF can be provided. Your shares will be purchased at cob price. Think of the brokerage you'll save - although there may be a share registry fee involved.

 

Hehe, my first job was at a lawyers that did the work of a local Building Society. On documents it showed how much interest would be payable on the life of the loan. That was scarey stuff!

 

Is anyone aware of a calculator (or has built one in excel!) which is a little more advanced than most of the online mortgage calcs, in that it can run scenarios and show principal/interest/repayment schedules based on things such as remaining loan term, amount in offset at points in time, extra lump sum and/or regular repayments, split between fixed / variable (and different rates), etc? Most of the ones I've found don't quite seem to cover everything.

 

I've been working on a spreadsheet for a while but it isnt flexible enough to model a wide array of scenarios.

I'd rather do it programmatically, but it has been about 10 years since I did programming at uni, so lets call it a work in progress. Maybe I can get that App written eventually!

cheers,
Inertia.

 

I'm surprised there isn't something easily available that covers wide ranging scenarios, for example, I refinanced to a new 30 year P&I loan 6 months ago, and during the 6 months I've;

- Split the loan between fixed and variable, with 2 different rates
- Made the minimum monthly repayments on both components
- Made an additional lump sum repayment directly into the variable component
- Had various balances each day in the offset

How can I practically work out how long the loan will take to be repaid based on what I've done so far, and then in addition if I change anything further in the future? There doesn't seem to be an easy answer.