How To Calculate Your Interest in Advance
As everyone knows, home loans are broadly made up of two parts: principal and interest.
Every home loan is the same in this respect, yet all loans differ in the proportions of each.
So what will your loan look like? To find out, luckily you don’t need to get the slide rule out or remember those calculus equations from high school - all you need is an interest calculator.
With a principal and interest calculator you can see how much interest will be payable on your loan based on different interest rates.
What’s more you can see how this will change if you save a bigger deposit, if you extend or shorten your loan period, or if you make extra mortgage repayments.
This can give you a more accurate picture of how much you will pay for your home loan over its entire term.
These sorts of calculations can be very helpful in providing motivation to save an even bigger deposit, as this can drastically reduce the amount of interest you end up paying.
Why not have a look at what your future loan might look like?
To get more detailed information on your situation, talk to a Loan Market mortgage broker today.