IO Loan Rates

[WebBoard]

From: Trina Blum


Hi again,

Does anyone know of a website that has a calculator that can be used to work out what repayments are for an interest-only loan? The ones I've looked at work the repayments out on a P&I loan.

Also I have noticed that the banks don't list their interest only loan rates just P&I, business,personal etc. Do I have to phone the bank to find out the IO rate or is there a website or newspaper that would give me the rate?

Regards
Trina

 

[Sim]

Reply: 1
From: Sim' Hampel


Most of the bank sites I've seen do show the IO (investment) loan rates.

As for calculating the interest payment, you don't need a web site, just a trusty old calculator.

Simply mulitply the loan amount by the percentage rate, and that gives you your annual interest bill. Divide it by 12 for a monthly figure, or by 52 for a weekly figure.

Eg.

$100000 loan (IO)
6.5% interest rate

Annual interest payment = $100000 * 0.065 = $6500
Monthly interest payment = $6500 / 12 = $542
Weekly interest payment = $6500 / 52 = $125

 

[WebBoard]

Reply: 1.1
From: Donna Larcos


Try the following web sites for info re bank
rates, application and monthly fees etc.
Hugh's calculators is very useful for all
sorts of financial calculators.



www.interest.com/hugh/calc/
www.yourmortgage.com.au

Donna

 

[Rolf Latham]

Reply: 2
From: Rolf Latham


Trina

major lenders do not normally have a difference between their Interest only and P&I rates. Most (but not all) loans can be taken with an interest only option.

Regards

Rolf

 

[WebBoard]

Reply: 3
From: Roger Sager


Look at the www.cannex.com.au/surveys.htm site. If that doesn't work go to the site with an address before the /. Once at the surveys of all interest ratesyou can drill down to one of the lenders and they offer ways of calculating loans, payments, etc.