The calculator doesnt take into consideration any early repayment charges or other fees that your. Applying mortgage acceleration during the interest only period helps to offset the potential jump in payment when the loan amortizes because your new payment is based on a lower mortgage balance. It provides an indication of the interest you could save. Additionally, if you do not accelerate an interest only mortgage your monthly mortgage payment usually increases significantly when the borrower is required to start paying principal in addition to interest. Use this home loan repayment calculator to work. Use this calculator to determine 1) how extra payments can change the term of your loan or 2) how much additional you must pay each month if you want to reduce. The more you accelerate your loan, the lower the required monthly payment. By making extra repayments on your variable rate home loan you can reduce the amount of interest you pay.
Calculate your extra mortgage payment today and. The calculator will use these figures to give you an estimated total interest savings and the new period of time it will take to pay off your loan. Because your required monthly payment during the interest only period of the loan is based on your outstanding mortgage balance, when you accelerate your loan and reduce your loan balance you also reduce your required monthly payment. The mortgage prepayment calculator helps you find how much you save by increasing your mortgage payment.
The main benefits of applying mortgage acceleration to an interest only mortgage are that you can reduce your required mortgage payment during the interest only period of the loan and also help manage the increase in payment when the loan converts to an amortizing mortgage and the borrower is required to start paying principal. Benefits of Accelerating an Interest Only Mortgage
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