Need help with working out the mortage repayments

[catcha]

Hi all,

Recently got a Villa and a loan for 402k the rate at the time was 5.75% on the loan document with homeside plus loan paying principle and interest for 30 years

On the document it clearly states 360* $2407.29

When I put these figures into a homeloan calculator online it gives me a figure of $2164 for the details above.

What am I missing, is there a hidden charge or fee I don't know of is the the trailing commission ? I'm paying an extra $60 towards something

i'm not very good with figures but I'm sure there is a logical explanation for this that I don't know of

 

[Connie]

I would like to know this as well as I am also with homeside and my repayments are $1646 per month at 6.47% on $259k and the calculator says it should be $1635

 

[Rixter]

Not all months are created equal so you cant have equal repayments.

Some only have 28, 29 (leap year), 30 & 31 days.

I hope this helps.

 

[chindonly]

Maybe interest only vs Principal and Interest calculations??

 

[AXXO]

Hi all,

Recently got a Villa and a loan for 402k the rate at the time was 5.75% on the loan document with homeside plus loan paying principle and interest for 30 years

On the document it clearly states 360* $2407.29

When I put these figures into a homeloan calculator online it gives me a figure of $2164 for the details above.

What am I missing, is there a hidden charge or fee I don't know of is the the trailing commission ? I'm paying an extra $60 towards something

i'm not very good with figures but I'm sure there is a logical explanation for this that I don't know of

I make it $2,345.96 calculated in arrears. Check with the bank & get them to explain how they calculated it. Could be various borrowing costs capitalised

 

[catcha]

Yeah will do it on Tuesday and ring Nab

 

[Peter_Tersteeg]

I would like to know this as well as I am also with homeside and my repayments are $1646 per month at 6.47% on $259k and the calculator says it should be $1635

This one's pretty easy to explain, HomeSide also has a $10/mth account keeping fee - it's always been there, fully disclosed on your loan documentation and is a lot cheaper than most banks pro-pack fees.

Most repayment calcuators use a fairly simple function, which you can put into a spreadsheet yourself. When interest is truly calculated daily, it's a little more complex, so the amount would be a few dollars higher, although it probably wouldn't be anywhere near $60.

LMI could have also been capitalized onto the loan, which would make the loan amount higher, which will also increase the minimum repayments. I'm guessing, but based on the loan amount and thus the probably LMI amount, this would account for about $60.

None of the banks that most brokers deal with charge extra in order to pay any commissions.

 

[catcha]

I'm pretty sure I avoided LMI by using my other property as security. Will have to ring but it's a $60 difference from the online calculator

 

[Rolf Latham]

I'm pretty sure I avoided LMI by using my other property as security. Will have to ring but it's a $60 difference from the online calculator

avoidance behaviour often leads to other issues : )

LMI isnt bad per se, but cross coll may be

do you have just a single loan ?

ta
rolf

 

[catcha]

Yes a single loan, I did know about the cross x but broker did otherwise that's another story and something I need to address when I have time

 

[Rolf Latham]

something I need to address when I have time

as an NLP mentor of mine says

When would now be a good time

ta
rolf

 

[Aaron_C]

Yes a single loan, I did know about the cross x but broker did otherwise that's another story and something I need to address when I have time

What do you mean by this?

 

[catcha]

What do you mean by this?

Yeah well I did mention it to him but me being me and really understanding I didn't have 20% to avoid LMI therefore the other IP I have was used as security for my purchase of my current PPOR

 

[ZachAnSel]

Yeah well I did mention it to him but me being me and really understanding I didn't have 20% to avoid LMI therefore the other IP I have was used as security for my purchase of my current PPOR

That's clear definition of cross coll loan..

 

[Aaron_C]

Yeah well I did mention it to him but me being me and really understanding I didn't have 20% to avoid LMI therefore the other IP I have was used as security for my purchase of my current PPOR

Might be a good idea to uncross it yourself now. Not a good thing to be stuck with.

 

[MaxwellSmart]

I make it $2,345.96 calculated in arrears. Check with the bank & get them to explain how they calculated it. Could be various borrowing costs capitalised

Spot on.

2345.962883 = +(402000*(0.0575/12))/(1-1/(((1+(0.0575/12))^360)))

 

[catcha]

Well I called homeside and asked why the difference, apparently they forget to adjust the repayment rates to reflect the interest rate, when interest rates drop.

she gave me a figure of monthly $2270 from my original $2407, and said she can change it there and then. I opted not to change as i'm still paying more towards the motgage. But at least I know why the difference.