How Does Our Home Loan Repayment Calculator Work?
Our home loan repayment calculator functions by considering various key factors that influence your mortgage repayments. Here’s how it works:
1. Loan Amount
Input the total amount you plan to borrow. This is the principal amount of the loan.
2. Loan Type
Specify the type of loan you’re considering. Different loan types can have different terms and conditions that affect repayments.
3. Interest Rate
Enter the interest rate of the loan. This is crucial as it directly impacts the amount of interest you will pay on top of the principal.
4. Loan Term
Choose the duration over which you intend to repay the loan. Loan terms typically range from 15 to 30 years.
5. Repayment Frequency
Select how often you will make repayments – monthly, fortnightly, or weekly. This choice can influence the total amount of interest paid over the life of the loan.
6. Repayment Type
Decide between ‘interest-only’ or ‘principal and interest’ repayments. ‘Interest-only’ repayments mean you only pay the interest for a specified period, while ‘principal and interest’ repayments include both the principal and the interest.
By considering these inputs, the calculator provides an estimate of your regular mortgage repayments. This helps in understanding your financial commitment and aids in budgeting for your future home loan. Contact us today to find out more.
*The results from this calculator should be used as an indication only. Results do not represent either quotes or pre-qualifications for the product. Individual institutions apply different formulas. Information such as interest rates quoted and default figures used in the assumptions are subject to change.
Our Loan Repayment Calculator Helps You Be Informed
Know what you might be getting yourself into with our loan repayment calculator. Using our loan repayment calculator offers several benefits:
- Financial planning becomes more accurate as you understand your monthly repayment obligations.
- Informed decisions are easier to make regarding loan terms, amounts, and types based on repayment affordability.
- Time-saving as it quickly provides essential loan repayment information without the need for complex calculations or consultations.
- Customisation allows for testing different scenarios by adjusting loan amounts, terms, and interest rates to see various outcomes.
- Risk assessment is aided by showing how loan repayments fit into your current financial situation.
- Convenience due to its ease of use and accessibility, providing instant calculations whenever needed.
