Many home buyers won’t be able to pay off the entire balance of a home loan in one lump sum early in order to save interest. If they had that kind of money, why did they need a loan in the first place? But every home buyer has the ability to save money on a home loan by making extra repayments. Through careful examination of your household budget, you could make an extra payment on a regular basis or add a little to the monthly bill. Every helps toward getting a home loan paid off earlier and saving thousands of dollars. The extra repayment calculator can serve as an inspiration to put some money aside, change your budget, and pay extra toward your mortgage.

 

For the extra repayment calculator, you will provide all the details of the initial loan. These include the total amount of the loan, the loan term and interest rate, your current payment schedule, and the length of the introductory rate term and the amount of the honeymoon payments, if these apply. From there, you will list your planned over payment amount, the planned frequency of these extra repayments, and how long you intend to do this, since you may only be planning on making extra payments for a set period of time.

 

The extra repayment calculator uses this data to determine your savings. It will display what you have saved through paying extra in a few ways. It will tell you how much time you will save in this example based on the variables you submitted, along the total dollars saved figure and a side by side comparison of your total payment with and without the extra payments. The extra repayment calculator can be used as a practical exercise or by borrowers looking for some inspiration to tighten their belts a little and pay extra toward their home loan.

Important: This calculator is provided to be use as a guide only and should not be considered a quote, a loan offer, or investment advice. Other criteria may need to be considered, and before taking out a loan you should always consult with your personal financial adviser.