It is a very common fact that by making repayments extra on your home loan, car loan or personal loan, you will be free from the debt faster. You can make these extra repayments. As you opt this mode of extra repayments you need to check the existing loan conditions and also ensure that if there is a provision for extra repayments along with any associated penalties. Using the mortgage extra repayment calculator, you can anticipate how much money and time can be saved on the home loan.

How Do Extra Repayments To Your Home Loan Work?

There are unmatched benefits of opting for extra repayment on your loans. The extra repayment calculator will be your key to ease out your debts. It helps the borrowers to get way ahead in time and their mortgage repayments. By entering the loan amount and the other details of payments like the rate of interest, frequency of repayment, the loan term and the loan amount the calculator will set aside the number of years from your debt tenure.

On the other hand in the next set you can enter the extra amount you wish to pay along with each instalment as per your set plan - weekly, fortnightly or monthly. The repayment calculator will also give you the exact interest amount saved by doing these extra repayments. In case of home loans, the majority of them allow umpteen number of extra repayments. But again, you need to check with the lender if they are charging any extra penalty for the same.

This repayment calculator will surely give you a broader picture of your loan status.

What are your options?

In order to pay off the home loans sooner, there are 3 extra repayment options available. Take a look.

Repayment Frequency Switch

You can change the frequency of the repayment from monthly to fortnightly which will eventually make the number of annual repayments more. By doing so you would pay 13 months payment instead of 12 months in a year without even noticing it.

Lump Sum Payment Option

In case you have inherited some money or have received a work bonus or probably have some extra money in hand, then you can do a lump sum payment to the ongoing loan to save on the interest.

Every Month a Little Extra Payment

On a particular term loan, if you keep on paying a little extra than the stipulated installment amounts every month, then there can be a big difference in the whole loan term. The extra repayment calculator will surely show the benefits of extra repayments.