Before you calculate home loan repayments, it is important to understand the different sections of the calculator and the function of each.
Loan Amount: This is where you enter the amount of your current or potential home loan
Interest Rate: Enter the interest rate of your home loan
Loan Term: The average loan terms range from 10 to 30 years, here is where you enter the length of yours.
Loan Fee: Charges that are billed monthly or yearly which go toward the administration of the loan. You can also set the frequency at which you pay these fees; weekly, fortnightly, or monthly.
Repayment Frequency: This is where you choose the frequency of your mortgage repayments; weekly, fortnightly, or monthly.
Once all of that is calculated, you will receive your estimated amount below. These include:
Monthly Repayment: The amount required to pay off your home loan.
Total Interest/Fee Payable: How much you interest and charges you would be required to pay in total across your term. Due to the fluctuating nature of interest rates and depending on the type of home loan, it is important to revisit the Home Loan Repayment Calculator if these, or your financial situation, changes.
Total Payments: The total amount of mortgage repayments required, including interest and fees. This is the greatest amount and will provide you the best incentive for the rate at which you wish to pay off your loan.
Loan Balance Chart: To the right of the calculator, you will find a helpful chart that illustrates your loan balance against your home loan repayments.