Mortgage Early Repayment Calculator
Based on the figures which have been entered into our Mortgage Early Repayment Calculator:
- If you continuously pay an amount of 800.00 on a monthly basis then you will be able to repay your mortgage off in 21 months quicker than if you paid the regular monthly installment of 500.00.
- This will reduce the overall amount that you will be paying on interest for the loan, reducing it from 1739.65 down to 1063.13. This saves you a total of 676.52, a significant amount.
Considerations When Repaying Your Loan Early
If you are considering taking out a mortgage, then it is important that you think about:
- Using the loan calculator in order to see the monthly loan repayment amounts depending on the term and interest rates of each loan.
- Reviewing the considerations of the personal loan before you sign the agreement. This is important so that you understand what you're getting into.
- Not jumping straight into the mortgage. Take some time to think about it, and consider all of your options. Remember, a mortgage is a long-term loan that will have a large impact on your life, so think carefully.
Using our early repayment loan calculator will allow you to calculate the monthly interest repayments that you will be making over the different time periods as well as helping you define whatever the best financial option for you will be. Our Early Repayment Loan Calculator provides you with a variety of monthly interest periods such as 1 year, 2 years, 3 years, 4 years, 5 years and 10 years, as well as the ability to compare them on the monthly repayment basis that you choose.
When you begin budgeting yourself for a mortgage, don't over-stretch yourself. For example, if you are looking at a long-term mortgage, then take a step back and look at what you can afford. If you begin to think that you can pay more on a monthly basis and cut down your interest costs, make sure that you can back up that thought with some proof, otherwise you may take on something you can't actually do. Loan overpayments are a fantastic idea, if you can do it. Even something as low as £50.00 extra a month can make a big difference in the end. Try our Additional Monthly Payments Calculator and check out the results for yourself.
Things to Consider Before Taking Out a Mortgage
- Affordability: Make sure you can afford the mortgage. If you take on a mortgage that you can't afford and didn't even consider the other options, it's your own fault. Before taking out a mortgage, make sure that you will be able to pay it off in the long run.
- Loan Security: Make sure that you read every fine detail on your loan contract. Remember, if you fail to make your repayments you may lose your home.
- Research: Take the time to do your research and look at the other possible lenders around you. Not only banks, but also building societies are known to run mortgage deals at certain times of the year. Make sure that you look at the different options available before focusing in on one lender, you could end up saving a lot of money.
- Interest Rates: Take the time to look at the interest rate of the mortgage. Not only that, but take into consideration the lifespan of the mortgage. You may see a low-interest rate and think to yourself that it's a great deal, although you'd be wrong. Make sure you look at the how long you will be repaying the mortgage as well as the interest rate, otherwise you could end up repaying a lot more than you actually think. Drive yourself away from the temptation.
- Borrow Little, Repay Quickly: Be sure that you limit your loan to only the money that you need, and not a penny less. On top of that, if you are able to make bigger repayments on your mortgage, take that opportunity and do so, they won't come around often.
- Pay Day Loans: Pay day loans are a dangerous type of loan that should never be considered. Not only do the lenders have no consideration for you or your financial future, but they only care about your money and will stop at nothing.
Taking out a mortgage is a huge financial step, make sure that you are ready for the stress that's to come with it.