Interest Only Mortgage Calculator
Using the Interest Only Mortgage Calculator
The Interest Only Mortgage Calculator will calculate fees and the total costs for each periodic repayment amount (either weekly, monthly or fortnightly). Below is a breakdown and explanation of the various input and output fields found on an Interest Only Mortgage Calculator to clarify exactly what information may be needed.
Input fields
- Loan Amount: Actual amount being borrowed
- Years: Period for which the loan was taken
- Intro Period/Fixed Term: This optional field is for home loans that have a special introductory offer
- Intro Period/Fixed Rate: The rate offered during this introductory term
- Interest Rate: The standard interest rate that will be charged on the loan
- Repayment Frequency: Interest only mortgages are calculated on monthly repayments so on this calculator Individuals need to be sure to choose the interest only option.
- Detailed fee columns: These are not mandatory fields, so individuals will need to fill these fields out to the best of their abilities for the most detailed comparison on actual costs. For those looking for a basic comparison, fee input fields may be left blank, but realise that this will be an underrated amount.
Results / Output Fields
- Total Fees: Calculation of all fees in the fee input fields
- Fixed/Intro Repayments: Any initial term interest rates or special fixed terms will have a different periodic repayment this is where this repayment amount is displayed.
- Ongoing Repayments: The Periodic repayment amount that is applicable for the remainder of the loan after any initial interest rates or fixed rate terms.
- Interest Paid: Total amount paid on interest for the entire period of the loan
- Total Cost: Amounts paid including interest and principle debt over the entire life of the home loan.
Important disclaimer
Although the Interest Only Mortgage Calculator is mathematically correct, the amounts produced are an estimate based on the information that is provided. Due to the very subjective nature of home loan approvals and applications, and other changing factors such as interest rates and credit ratings, the amounts must not be relied upon as fact. It is best to use the calculator to work out approximate figures e.g. for affordability and repayments scenarios. After application has been accepted, however, a far more accurate schedule will be sent to the potential borrower.
Interest Only Home Loans
Interest only home loans have become ever more popular over the last few years as they offer buyers a lower initial monthly repayment. In the past this option was only used by buyers purchasing investment properties, but due to increased barriers to entry and other factors, more and more home buyers are opting for this option whether it is to get cheaper repayments or to afford a better home.
Conclusion
The problem with interest only home loans as compared to standard home loans is that after a number of years of paying on your home, your principal debt is exactly the same. For many this may seem a long way off and the upfront savings may be far too tempting. It is important to know the risks and realise that at some stage the principle debt will need to be paid, therefore it is not always prudent to worry only about monthly liquidity.
Use the Interest Only Mortgage Calculator to project a realistic forecast for budgeting purchases. With the economic turmoil and property markets facing extreme uncertainty, an interest only home loan is a fantastic option for the right person who uses the savings to make money, not just too make ends meet.
Related posts:
- Home Loan Interest Calculator
- Offset Mortgage Calculator
- Mortgage Repayment Calculator
- Home Loan Repayment Calculator – Apple Widget Download
- Mortgage Switching Calculator
- Loan Comparison Calculator
- bankmecu Interest Only Home Loan
- How To Benefit From A Home Loan Calculator
- Chattel Mortgage Calculator
- Bankwest Interest In Advance Fixed Loan
Top Home Loans
| Home Loan | Details | Interest Rate (p.a.) | Comp Rate^ (p.a.) | App Fee / Ongoing Fee | Max LVR | Min & Max Borrowing | |
|---|---|---|---|---|---|---|---|
 Loans.com.au - Dream Catcher | A home loan offer with a $0 application fee and one of the lowest available home loan interest rates. | 5.85% | 6.21% | $0 / $375 | 80% | $50,000 / $750,000 |
 
|
 Bankwest Online Home Loan | A low interest rate home loan with a $0 application fee and ongoing maintenance fees. This offer is exclusively available by applying online. | 5.97% | 5.97% | $0 / $0 | 80% | $100,000 / $1,000,000 |
|
 Illawarra Home Loans Bank Beater Home Loan | A low variable rate, beaten down even further by 0.05% p.a. after 5 years. | 6.07% | 6.35% | $0 / $345 | 90% | $250,000 / $1,000,000 |
|
 State Custodians Mortgage Company Standard Variable Offset Loan | Awarded the 2011 Non bank Lender of the Year this feature-packed loan rewards customers with a bonus rate drop of 0.25% after 5 years. | 6.02% | 6.23% | $0 / $345 | 95% | $150,000 / $1,000,000 |
|
Ask A Question