#housing loan calculator
Home Loan Calculator
It’s a big investment, buying a home. It’s the biggest investment almost all of us will ever make. So without question we want and need to do it wisely and well.
Now there are two major components with any home loan – the principal and the interest. You borrow X amount of dollars which is the principal but you pay back more than that because you also pay the interest. Now how much interest you pay depends on a number of variable factors including the rate of interest, how fast you repay the loan and decisions made by the finance authority which has granted you the loan in the first place.
And because the amount you eventually pay back can vary significantly it is vital you obtain the best loan for your circumstances. Everyone is different. There is no such thing as one loan suits every customer. And one of the best ways to help you choose your loan is to make a home loan comparison. Discover the facts about a wide range of loans. Study your financial status and how it is likely to pan out in the future and use this information to take out the best loan for you.
Nobody can tell you what home loan interest rates will be in five or ten years’ time. It can be difficult to know about rates in the next few months. So in planning to take out a loan choose between a fixed interest or a flexible home loan. There are pros and cons for each type of loan and your financial adviser will furnish you with the details.
Remember too that the home loan calculator applies to loans where someone is already in their own property and is looking for a revised mortgage. You are just as welcome as a brand new home loan aspirant.
Go online for home loan rates comparison
Service for customers has improved in many ways and one involves software you can access to work through a number of financial scenarios. A home loan payment calculator for instance can give you a print out on how much you will need to make as a minimum monthly repayment on a loan of X dollars.
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You need to type in figures such as the amount you wish to borrow and the proposed length of the loan and the software does the rest. Can you budget to make a minimum monthly payment of X dollars? The information you gain is hugely valuable.
The type of loan is important. For instance if you took out a no deposit home loan, you would probably have a higher interest rate than someone who had saved money and could provide 10, 20 or even 30% of the purchase price at the time of asking. But obviously even a person with a solid deposit would need to prove their income capability and someone with a well paid and secure job would also be looked upon favourably.
If you took out a loan where you contributed very little, even nothing to the initial purchase price, the lender would probably insist that you took some form on mortgage insurance to cover their investment should something unforeseen happen. The floods in Queensland in 2011 are an example of unexpected circumstances which could seriously impact the borrower’s ability to repay their loan.
The Global Financial Crisis was in part triggered by lenders being over generous and giving home loans to people who were not well off and far more likely to default on their loan which they did.
Australian financial situation
Any loan calculator in Australia will give accurate long range figures because of the sound economic conditions Down Under. As a budding borrower in Australia, you are assured of a wide choice of secure lending facilities and can have confidence that any figures you receive for a home loan will be financially solid. As previously stated, it is difficult if not impossible to accurately predict movements in interest rates but Australia has a long record of generally sound economic growth and stability. Periods of tough economic times have not lasted long and excellent employment prospects mean borrowers can have confidence in being able to repay their loan.
Consider the costs
While its true that home loan repayments can be calculated accurately for the length of the loan, there are other costs which need to be considered.
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The lender may charge for such things as an establishment fee and perhaps even a monthly fee to administer the loan. Insurance of the loan is another extra cost. Depending on the state or territory in Australia where you live the local government may also charge stamp duty which is a tax on the purchase of real estate. That may eat into your savings requiring you to borrow more. All these factors can be handled by your home loan repayments calculator.
Home Loan Repayment Calculator
You might choose to have a loan with a fixed rate of interest for a certain period before reverting to a variable interest rate. Again, home loan calculators can take all this into account. What about a situation where you do well financially and wish to pay back more than the minimum monthly figure? That will affect the length of your loan and thus the overall amount of money you pay back. It might mean that the extra funds you pay can be available as a loan should you need it. Again this information can be fed into the calculator and allow you to see the results in a moment or two.
Dreams can come true
You think about your new home. Well with the right lending authority your dream can come true. Of all the qualities in a loan, you should concentrate on and aim for something simple.
And the way to do that is to start with a brilliant home loan calculator. They use cutting edge technology. They give you information to make your loan selection task easy. It’s a safe, secure and simple home loan solution using all the benefits of the online banking revolution.
This guide is general information only and is not product advice. If you need advice on your circumstances you should seek professional financial advice.
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*The comparison rates above are for secured home loan products of the lenders as shown, based on a loan amount of $150,000 and a term of 25 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.