Use the Atomic Home Loans lump sum calculator to estimate how much time and money you could save by making a lump sum repayment.
This lump sum calculator is fairly straight forward to use. To begin, simply enter the loan amount you require along with the current interest rate, loan term and loan repayment frequency.
The second step is to enter the details of your lump sum payment. This requires that you input the lump sum amount along with when that lump sum payment will be made.
The Lump cum calculator will then work out the results which will highlight your current monthly repayments, the balance of the loan at the time you make the lump sum payment, the time saved by making a lump sum payment as well as the amount of interest saved by making the lump sum payment.
Most commonly, lump sum payments are made when an asset such as an investment property is sold. The proceeds, minus any tax and sales expenses, are then paid into the loan account in order to minimize the outstanding loan balance on your home loan.
This, in turn, reduces the amount of interest you have to pay for the remainder of the loan balance.
The graph on the right hand side of the Lump Sum repayment calculator will provide you with a visual image of the difference between making a lump sum payment or not.
Importantly, you see exactly how much time you can save off your mortgage by making a lump sum payment at a specific time.
The earlier you can make the lump sum payment, the better. This is because the loan balance is reduced for a longer period of time, thus minimizing the amount of interest you pay.
For more information on Lump Sum Payments, and how they can affect your mortgage, give us a call on (02) 9188 8834, or click here to contact us via our webpage.See All Calculators