Hi,
This could be a newbie question, but I'd ask it anyway as I'm getting very curious with this.
I keep looking at the statement of my home loan, I'm on 3 years fixed rate loan (7.65%) with Westpac since mid 2007 and will be converted to variable rate in mid 2010. My loan when first drawn was $220,000, since mid 2007 after series of repayment it has come down to $212,304.
From what I understand is that, the interest I pay on my loan would become lower from month to month, but on the statement it tells different story.
1. So I was wondering if anyone could help me to figure out how does the math/interest calculation work?
2. This is the loan for a house/residential property that I currently live in. Is there better things/options I should be doing at this stage, apart from making extra repayment each month? It seems there's still a long long way to go before the loan can be completely paid off
Here's the recent bank loan statement, I've hidden my account number (*for privacy reason )
28 Oct 2009 DEPOSIT WESTPAC BANKCORP DIRECT DR 1,675.00
28 Oct 2009 INTEREST 1,343.92
1 Oct 2009 FEE 8.00
28 Sep 2009 DEPOSIT WESTPAC BANKCORP DIRECT DR 1,675.00
28 Sep 2009 INTEREST 1,390.52
1 Sep 2009 LOAN MAINTENANCE FEE 8.00
28 Aug 2009 DEPOSIT WESTPAC BANKCORP DIRECT DR 1,675.00
28 Aug 2009 INTEREST 1,392.32
3 Aug 2009 LOAN MAINTENANCE FEE 8.00
28 Jul 2009 DEPOSIT WESTPAC BANKCORP DIRECT DR 1,675.00
28 Jul 2009 INTEREST 1,349.47
1 Jul 2009 LOAN MAINTENANCE FEE 8.00
29 Jun 2009 DEPOSIT WESTPAC BANKCORP DIRECT DR 1,675.00
29 Jun 2009 INTEREST 1,396.16
1 Jun 2009 LOAN MAINTENANCE FEE 8.00
28 May 2009 DEPOSIT WESTPAC BANKCORP DIRECT DR 1,675.00
28 May 2009 INTEREST 1,353.11
1 May 2009 LOAN MAINTENANCE FEE 8.00
28 Apr 2009 DEPOSIT WESTPAC BANKCORP DIRECT DR 1,675.00
28 Apr 2009 INTEREST 1,400.12
This could be a newbie question, but I'd ask it anyway as I'm getting very curious with this.
I keep looking at the statement of my home loan, I'm on 3 years fixed rate loan (7.65%) with Westpac since mid 2007 and will be converted to variable rate in mid 2010. My loan when first drawn was $220,000, since mid 2007 after series of repayment it has come down to $212,304.
From what I understand is that, the interest I pay on my loan would become lower from month to month, but on the statement it tells different story.
1. So I was wondering if anyone could help me to figure out how does the math/interest calculation work?
2. This is the loan for a house/residential property that I currently live in. Is there better things/options I should be doing at this stage, apart from making extra repayment each month? It seems there's still a long long way to go before the loan can be completely paid off
Here's the recent bank loan statement, I've hidden my account number (*for privacy reason )
28 Oct 2009 DEPOSIT WESTPAC BANKCORP DIRECT DR 1,675.00
28 Oct 2009 INTEREST 1,343.92
1 Oct 2009 FEE 8.00
28 Sep 2009 DEPOSIT WESTPAC BANKCORP DIRECT DR 1,675.00
28 Sep 2009 INTEREST 1,390.52
1 Sep 2009 LOAN MAINTENANCE FEE 8.00
28 Aug 2009 DEPOSIT WESTPAC BANKCORP DIRECT DR 1,675.00
28 Aug 2009 INTEREST 1,392.32
3 Aug 2009 LOAN MAINTENANCE FEE 8.00
28 Jul 2009 DEPOSIT WESTPAC BANKCORP DIRECT DR 1,675.00
28 Jul 2009 INTEREST 1,349.47
1 Jul 2009 LOAN MAINTENANCE FEE 8.00
29 Jun 2009 DEPOSIT WESTPAC BANKCORP DIRECT DR 1,675.00
29 Jun 2009 INTEREST 1,396.16
1 Jun 2009 LOAN MAINTENANCE FEE 8.00
28 May 2009 DEPOSIT WESTPAC BANKCORP DIRECT DR 1,675.00
28 May 2009 INTEREST 1,353.11
1 May 2009 LOAN MAINTENANCE FEE 8.00
28 Apr 2009 DEPOSIT WESTPAC BANKCORP DIRECT DR 1,675.00
28 Apr 2009 INTEREST 1,400.12