Extra repayment calculation

[cimbom]

Hello,

Just wondering if anyone knows of a way (or site, etc) I can calculate the time it would take us to pay off our PPOR by making x amount of extra repayments upto say year 5 of the loan and then pay a different amount from that time onwards? I've tried to do it by breaking it up on two different online calculators but I don't think this is accurate due to compounding interest.

Thanks

 

[D.T.]

http://bit.ly/1aFmbS4

 

[cimbom]

Did you read my post? That only works if the extra repayment amount stays the same for the whole period. I would like to calculate:

$x extra per fortnight from year 1 to year 5
$y extra per fortnight from year 5 onwards

 

[Singo]

If you calculate the loan balance you will have by end of year 5, then you can calculate how long it will take to pay off from year 5.

 

[Dean2012ad]

Use http://www.nab.com.au/personal/loans/home-loans/loan-calculators/extra-repayments-calculator

Put in your amount, rate, and extra amount (x)....slide your cursor along the graph to year 5, take that figure then chuck it in the 'loan amount' with your new 'extra contribution' (y). It has 'time saved' and the comparative length of the loan after extra payments.

 

[cimbom]

Thanks for your replies. That was what I did but I wasn't sure if I needed to change the loan term to 25 years for the second part of the calculation or keep it as 30?

 

[Singo]

Second part of the calculation should be based on 25 year loan term, unless you are going to refinance the loan by the end of 5 years again to 30 years.

 

[cimbom]

Thanks Singo. Looks like it will be paid off in approximately 8 years (fingers crossed)

 

[kathryn d]

Good to hear Cimbon,


I was playing with numbers yesterday too.
We have 4 mortgages up for renewal in 2014,
Currently they range from 4.05-4.5%

I've heard that taking the lowest rate, even for a year, always out performs, on average, than locking in for a longer term (on pretty good rates)

At the moment the posted rates would be 5 yr closed variable @ Prime+0% (currently prime is 3%)
OR
3.79% closed for 5 yrs

I wish I had a crystal ball...I just don't know if I'm confidant these rates will stay here. I doubt they will go lower.

 

[Peter_Tersteeg]

I think what you're looking for can be solved with one of Microsoft's standard Excel worksheet templates. The forum won't allow macro emabled worksheets to be uploaded, but here's a link to my Dropbox file:

https://www.dropbox.com/s/tuoikj6keduvr8g/Loan calculator.xlsm

 

[flightcrank]

this site is set up by the government. And it seems pretty darn good.

https://www.moneysmart.gov.au/tools-and-resources/calculators-and-tools/mortgage-calculator