How can I pay off my loan faster or save money on my loan? On the other hand, if you choose to only make interest-only repayments, your monthly repayment amounts may be smaller but the overall cost of the loan will be bigger because you’re deferring paying off the amount borrowed.
Repayment type: If you choose principal and interest repayments, your monthly loan repayments may be higher but your overall loan costs will be lower, because you’re chipping away at the amount you’ve borrowed as well as the interest portion of the loan. Here’s how your repayments could change with different loan terms. That also means your overall loan amount will be smaller than if you chose a longer loan term.įor example, let’s say you take out a $500,000 loan over a 30-year loan term, making monthly principal and interest repayments with an interest rate of 2.5% p.a. If you chose a shorter loan term, your monthly or fortnightly repayments may be bigger, but you’ll pay less interest over the life of the loan. Loan term: A longer loan term means your monthly repayments will be smaller, but over the total loan term you will actually end up paying more in interest because the interest has more time to accumulate. Other factors, such as the loan term, repayment frequency and type can also have an impact on your repayments. There are many factors that can have an impact on your repayments, the most obvious ones being the interest rate and the loan amount.
How does my loan term, frequency and repayment type impact my repayments? This means whatever interest rate you use will be applied for the whole loan term. While there are many factors that can influence this calculation such as changes in interest rates, a decision to refinance, or using a redraw facility, the calculator will still be able to give you an estimate of how much your regular repayments could be and the total interest paid over the life of the loan.īy changing the interest rate, loan term, and repayment frequency fields, you can compare how these differences can impact your repayments.ĭisclaimer: The results yielded by the calculator assume no changes in interest rates over the loan term. Your Mortgage’s mortgage calculator considers a variety of factors to determine how much your regular repayments will be over the loan term. How does the mortgage repayment calculator work?
Different terms, fees or other loan amounts might result in a different comparison rate. Warning: this comparison rate is true only for this example and may not include all fees and charges. *The Comparison rate is based on a $150,000 loan over 25 years. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user.
Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%.
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