Hello all,
I am a little confused with respect to 100% offset accounts and how how much money you have in your offset account affects the monthly loan repayment assuming I'm on P & I repayments.
So say I have a loan for $300k P & I at 5.21% my reapyments on a 30yr loan term with no money in offset would be $1649.19.
Say I dump $50k into my offset account 2 months later, interest is now calculated on a loan balance of $250k -correct.
But does this mean the lender now deducts P & I based on $250k, or do they just reduce the interest compenent?
I guess bottom line is what will be my next month payments if I'm on P & I payments after I deposit the $50k? Will it stay the same? and if not how is it calculated by the lender to determine?
any help or clarification greatly appreciated.
rgds,
Ker
I am a little confused with respect to 100% offset accounts and how how much money you have in your offset account affects the monthly loan repayment assuming I'm on P & I repayments.
So say I have a loan for $300k P & I at 5.21% my reapyments on a 30yr loan term with no money in offset would be $1649.19.
Say I dump $50k into my offset account 2 months later, interest is now calculated on a loan balance of $250k -correct.
But does this mean the lender now deducts P & I based on $250k, or do they just reduce the interest compenent?
I guess bottom line is what will be my next month payments if I'm on P & I payments after I deposit the $50k? Will it stay the same? and if not how is it calculated by the lender to determine?
any help or clarification greatly appreciated.
rgds,
Ker