Interest Only Mortgage Repayment Calculator
What Does This Calculator Do ?
This interest only mortgage calculator helps you work out what your regular repayments during and after interest only period will be based on your loan amount. Repayments frequency can be changed to monthly, fortnightly or weekly.
What Is Interest?
The interest is what the lender charges you to borrow the money. The interest rate is determined can be determined by the risk of the home loan, the type of loan it is and the security offered.
Interest Only Benefits
If you decide to opt for interest only repayments on your home loan, this will see you only paying the interest owed on your loan with the balance remaining the same, effective for investors who are wanting to keep repayments minimal, rely on capital growth or take advantage of tax benefits.
Be cautions when opting for interest only loans, it is a risk when focusing only on the ability to make the interest only payments. The reason is because the borrower will eventually have to pay interest and principal once the interest period is over.When this occurs, the payment could increase significantly, leading to what is called payment shock.
- It does not take into account any possible up-front fees. Only Ongoing fees are used not Upfront or End of loan fees (i.e. discharge costs)
- Interest rate does not change over the loan term.
- Interest is calculated by compounding on the same repayment frequency selected, i.e. weekly, fortnightly, monthly. In practice, interest compounding frequency may not be the same as repayment frequency.
- It is assumed that a year consists 26 fortnights or 52 weeks which is counted as 364 days rather than 365 or 366 days.
- No rounding is done throughout calculation whereas repayments are rounded to at least the nearer cent in practice.
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So, why use Highline Lending for your home loan?
We meet for a consultation, obtain your supporting documents and proceed to structure and package your application for approval knowing exactly what the banks want to see. We also monitor your home loan post approval ensuring you’re home loan suits you and your financial position
We get paid a commission from our lenders as a result of introducing your business to them. Subsequently, our service is at no cost to you. Our commission does not affect your interest rate whatsoever, if anything, we’re in a position to get you a lower interest rate than the general public due to our relationships with our banks
With our many years experience in the industry, we’ve been exposed to both easy and complex loan scenarios. Each loan we process gets presented to over sixty financial institutions, ensuring we have explored all options possible and are able to provide a solution