Mortgage Payment Calculator
There’s nothing more rewarding than homeownership, andwe’ve taken much of the guesswork out of the decision making process. It’s easy to use our convenient mortgage repayment calculator as a tool to estimate the breakdown of both a potential monthly and yearly mortgage payment.Based on the capital required, loan term and interest rate desired, you can ‘calculate’ many possible mortgage loan scenarios to plan accordingly for your financial future.
Mortgage Payment Calculator [Enter Number]
Refer to the FAQ’s section below to learn about significant differences between a capital &repayment mortgage and an interest only mortgage.
A Capital & Repayment Mortgage-What is it?
A capital and repayment mortgage secures the home, dividing a portion of monies borrowed into capital repayment, and payment applied toward interest. By the end of the loan term, if all of the payments have been made, the mortgage loan will be paid off. In the earlier stages of the loan term, a bigger portion of the payment is allocated toward paying down the interest, while the capital balance is reduced slowly. As time goes on however, a greater percentage of the payment applies to the capital rather than the interest.
What is an Interest Only Mortgage?
An interest only mortgage securesthe home, applying the monthly payments towards the interest on the loan only. At the end of the loan term however, the initialbalance at the time of loan origination is still outstanding.One of the greatest advantages to this type of mortgage is that monthly payments are much less because they only cover the interest portion. At the end of the loan term however, the capital must still be repaid and the home can be repossessed for non-payment of that amount.
While some homeowners plan on using the proceeds from the home sale at the end of the loan period to pay-off the capital, many have been left without options when property values fall into sharp decline and the bottom falls out of the housing market.
Negative Equiry-What is it?
Negative equity occurs when the amount of money owed on the balance of the mortgage loan exceeds the value of the home itself. This creates a situation where the homebuyer is “upside down” or “under water”. If the owner wishes to remain in the home until prices once again rise, there is no fundamental immediate problem. Once, however the home is to be sold, the matter of equity comes into play. Every thousand dollars lost in negative equity, is another thousand that cannot be applied to the outstanding loan balance. Some homeowners must not onlytake a loss on potential income,but must also dip into savings or take out further loans to payoff the mortgage.
While we make every effort to ensure the accuracy of the mortgage repayment calculator tool, we are not liable for damages, whether monetary, incidental, consequential or otherwise in connection with its use. The calculator tool is not intended as a replacement for professional independent financial advice.