Interest Repayment Calculator

Buying a home is an exciting process, but it also requires some capital to get started. You’ll also need to understand how mortgage interest repayments work and specifically, how much interest you’ll be paying. An interest repayment calculator can help determine the interest portion of your home loan repayments, so that you can quickly see, based on different amounts, what your interest repayments will be.

Understanding how mortgage interest works is key to helping you understand what your monetary commitments will be during the term of your home loan.

Using an Interest Repayment Calculator

 

If you’re buying a new home, looking to invest in property or refinance your existing home loan, an interest repayment calculator can help you figure out what your repayments will be during the term of your loan. You should also look at your home loan options as well, so you have a balanced picture to base your decisions on.

By entering in the amount of your home loan, choosing a repayment frequency, rate and term, you’ll be able to see how much interest you’ll pay over the life of your mortgage. This will help you decide how much you’re willing to spend on your home loan and allow you to budget for ongoing mortgage repayments.

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What is Mortgage Interest

 

As with any loan, there is always an amount of interest that you have to pay on that loan — calculated as a percentage of the money that you still owe based on the interest rate chosen.

The interest rate depends on a number of factors — including the strength of the economy, the type of home loan that you’ve taken out — fixed or variable rate and the length of time that you need to pay it off.

 

Calculating Interest Repayments

 

Calculating the amount of interest that you will be paying on the money that you have borrowed for the entire length of the loan isn’t always easy.

If you have opted for a fixed rate loan, it is slightly easier, as you will have agreed an interest rate at the time and your repayments are fixed for a set period of time.

For those who opt for a variable rate, however, it is almost impossible to accurately predict how much interest you’ll pay over the life of the loan, as the interest rate will fluctuate, depending on what is happening in the economy. And of course, as time passes and you pay off more of your loan; the less interest you’ll pay.

By being able to calculate the interest repayments on your home loan, you will be able to decide whether you can realistically afford that slightly larger property, or compare what you are paying now with the other options that are available to you.

Chat to one of our ACF qualified mortgage experts today so you can determine what the interest repayments and home loan structure will best suit your needs.

Talk to our friendly team of Australian Credit and Finance mortgage experts who can help you navigate your way through the process of buying a home, investing in property or refinancing your home loan. Call us today on 1300 735 557 to discuss your home loan and interest repayment options.
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