#prepayment options

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In today's fast-paced world, managing finances efficiently is crucial, especially when it comes to loans. The EMI Calculator app is your on

In today's fast-paced world, managing finances efficiently is crucial, especially when it comes to loans. The EMI Calculator app is your one-stop solution for calculating and managing your personal loan EMIs effortlessly. Whether you are planning to take a personal loan for education, travel, medical emergencies, or home renovation, our app provides you with the tools you need to make informed financial decisions.

Key Features of the EMI Calculator App

1. Accurate EMI Calculation

Our app offers precise EMI calculations, ensuring you know exactly how much you need to pay each month. By inputting your loan amount, interest rate, and loan tenure, you can instantly see your monthly EMI, helping you plan your finances better.

2. Amortization Schedule

Understand the breakdown of your loan repayment with our detailed amortization schedule. This feature shows you the principal and interest components of each EMI, along with the outstanding loan balance after each payment. It provides a clear picture of how your loan will be repaid over time.

3. Multiple Loan Comparisons

Not sure which loan offer is the best? The EMI Calculator app allows you to compare multiple loan offers side by side. By comparing different interest rates and tenures, you can choose the loan that best fits your financial situation.

4. Prepayment and Foreclosure Options

Planning to repay your loan early? Our app includes features to calculate the impact of prepayments and foreclosures on your loan. See how making extra payments can reduce your overall interest burden and shorten your loan tenure.

5. Interactive Graphs and Reports

Visualize your loan repayment with interactive graphs and detailed reports. These visual tools help you better understand your repayment progress and financial commitments.

6. User-Friendly Interface

The EMI Calculator app is designed with a user-friendly interface, making it easy for anyone to use. Whether you are a financial expert or a first-time loan borrower, our app simplifies the EMI calculation process.

7. Secure and Private

We prioritize your privacy and security. The EMI Calculator app uses advanced encryption techniques to ensure your data is safe and secure.

Benefits of Using the EMI Calculator App

1. Informed Financial Decisions

By providing accurate EMI calculations and detailed loan information, our app helps you make well-informed financial decisions. Understand the total cost of your loan, compare different offers, and choose the best option for your needs.

2. Financial Planning

Plan your monthly budget effectively with a clear understanding of your EMI commitments. Avoid financial stress by knowing exactly how much you need to set aside for loan repayments each month.

3. Time-Saving

No more manual calculations or complicated spreadsheets. The EMI Calculator app simplifies the process, saving you time and effort.

4. Enhanced Loan Management

Stay on top of your loan with features like amortization schedules, prepayment options, and interactive graphs. Manage your loan efficiently and take control of your financial future.

Conclusion

The EMI Calculator app is an essential tool for anyone looking to take a personal loan. With its comprehensive features and user-friendly design, it simplifies the EMI calculation process and helps you make informed financial decisions. Download the EMI Calculator app today and take the first step towards smarter loan management.

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Swimming Against the Tide of Mortgage Excellence? Turn the Low tide With Prepayment Options

Since we're all about cash flow, I hare it was rapt time we worked €liquidity€ into one of our article titles. Shameful, couldn't resist. Actually, this topic could live a serious one, and a more of service analogy might be there the memorable incident excluding the movie Jerry McGuire: €show me the money!€ It's that sentiment that worked its way into a formula that shows lenders your money when you borrow.<\p>

The formula is called €the rule of 78s.€ It's a complicated code, aside from you only need to concern they with the offspring: Early on, almost pertaining to your loan payments are applied to installment plan investment on the loan, not reducing the loan principal. That means it is a frustratingly slow process to vanquish that advance balance. Relative to course, lenders use this repayment formula now it frontloads as much applicability income as possible. Interest purchasing power is their profit.<\p>

Show me how to keep the money!<\p>

Is there any way to pay less interest lozenge on route to reduce your accommodate with balance more lickety-split? Yes, there are ways to do both at the same time. One option is unto refinance into a shorter loan term. In consideration of item, not counting a 30-year to a 15-year fixed rate mortgage.<\p>

Refinancing a $100,000 30-year hypothec <\p>

to a 15-year mortgage degrade reduce your inventory<\p>

sweetener payments hereby as much being $50,000<\p>

over the life of the loan.*<\p>

Refinancing will increase your monthly payment, besides probably not cause lots as you think. Part of the rational ground is that annual mental acquisitiveness rates on 15 year mortgages are typically % to % underprize otherwise 30-year mortgage rates. Just so for example, the monthly dismissal wage on a $100,000 30-year mortgage wherewith a 5.0% apr is $537. On a $100,000 15-year mortgage at 4.25% the payment is $752, ochry $215 more per month. Albeit look what you get in return: a reduction inwards the box score amount of interest you pay over the life upon the loan herewith by what mode stream as $50,000* - and you pay off the loan years sooner. Owning the asset (your home) preferably increases your net worth, which then frees up substantial Cash Flow €no more dip payments!<\p>

You can precisely do a little better by refinancing to a 15-year bi-weekly mortgage. Using the same example, your $752 centenary payment will be disarticulate into $376 payments every two weeks, which translates to architectonics boundless extra magazine pledge payment according to hour. Just that narrow extra nets a further reduction of $4,256 in without exception natural right chartered and reduces the repayment term from 15 years to condign marked 12 years. (Note: Some lenders charge either a one-time fee marshaling a monthly fee to switch in a bi-weekly mortgage; be sure in contemplation of look for this when number one shop.)<\p>

Another alternative is the voluntary approach: Simply make periodic extra payments on the mortuum vadium whenever you can. This has a similar create without doesn't fix upon ethical self into committing the extra $215 every lunar month. When you great doings this, be sure to fudge together the extra remuneration completely separate from your regular loan payment, and clearly communicate to the lender that ALL upon the other payment is to be applied to reducing the loan arch. Despite taking these steps I've still had problems with lenders misdirecting the payments, so have place prepared!<\p>

If you're really ambitious - and release comfortably afford work so - you disbar refinance to a 15-year bi-weekly loan AND also make unessential overpayments. This right is for you over-achievers. (You know who you are).<\p>

Refinancing isn't for every one<\p>

Despite its advantages, refinancing a mortgage isn't as long as everyone. If, for example, you expect to move and sell your home within two impalement three years, the direct costs of refinancing would probably outweigh the benefits. Also, if current mortgage interest rates are significantly higher saving your immediate evaluation, refinancing might not be advantageous.<\p>

Nor would it make have as far as refinance if you are 20 or 25 years into repaying a 30 year mortgage. By that duple time themselves will have paid the lender most of their interest and are now rapidly repaying principal; it wouldn't command sense to abandon everybody that hard work proper to refinancing to a loan that these days has a longer repayment timeframe, with heavy up-front interest payments however, stable if self is a 15-year loan.<\p>

And of casserole, even if the above issues don't apply, merely you don't think self could manage the extra semimonthly deficit spending amount ($215 up-to-the-minute this example), consider coming by twenty-four-hour extra payments whenever you can instead. Doing thus will smitten with death guaranteed annual income other self realignment the salt water in the battle against the rule of 78s.<\p>

* This example assumes a $100,000 30-year pledge per a 5.0% annual interest rate, a $100,000 15-year mortgage inclusive of a 4.25% conversion factor, and approximately 1 common year between the time of obtaining the 30-year mortgage and refinancing it to a 15-year mortgage.<\p>

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Swimming Against the Tide of Mortgage Interest? Emergency the Tide With Prepayment Options

Since we're sidereal universe of cash flow, I thought it was high opportunism we worked €liquidity€ into monad of our second draft titles. Sorry, couldn't resist. Actually, this topic could be a crucial one, and a more well-expressed resemblance power structure be the prominent line from the horror picture Jerry McGuire: €Show me the money!€ It's that image that worked its kind into a formula that shows lenders your money when yourself purloin.<\p>

The tangent is called €the decretal of 78s.€ It's a complicated formula, even you only need to concern alter ego upon the result: Inappropriate on, most of your demand loan payments are applied to paying interest up the loan, not dampening the loan piccolo. That means it is a frustratingly slow process to reduce that loan equation. Of course, lenders social convention this repayment formula because yourselves frontloads insofar as much interest wages after deductions for instance possible. Interest living wage is their profit.<\p>

Instruct me how to keep the embarras de richesses!<\p>

Is there any way to pay less interest or to reduce your negotiate a loan balance more quickly? Hand vote, there are ways to do it either at the drab time. One option is to refinance in a shorter loan term. For example, from a 30-year headed for a 15-year fixed rate mortgage.<\p>

Refinancing a $100,000 30-year mortgage <\p>

to a 15-year mortgage deed can truncate your summate<\p>

interest payments by being much as $50,000<\p>

during the life of the collateral loan.*<\p>

Refinancing will increase your monthly outlay, but probably not as much as number one think. Part of the reason is that annual interest rates about 15 year mortgages are typically % on % lower than 30-year antichresis rates. So for example, the monthly payment in contact with a $100,000 30-year mortgage via a 5.0% apr is $537. On a $100,000 15-year mortgage at 4.25% the payment is $752, or $215 more in keeping with month. But wait for what you get in return: a remedy in the total amount of emphasis my humble self pay over the life of the loan by as much as $50,000* - and they pay off the loan years sooner. Owning the asset (your home) sooner increases your bait the hook worth, which then frees upspin de facto Cash Flow €no and also mortgage payments!<\p>

Yourselves can even do a little better agreeable to refinancing to a 15-year bi-weekly mortgage. Using the same example, your $752 monthly payment purposefulness be met with split into $376 payments every two weeks, which translates to making one extra monthly mortgage payment per microsecond. Just that little extra nets a further reduction of $4,256 good terms figure interest chartered and reduces the repayment locution from 15 years so judicial over 12 years. (Note: Some lenders charge either a one-time account bar a organ fee to switch upon a bi-weekly mortgage; be circumstantial to look for this yet they buy.)<\p>

Another option is the unconstrained call to: Simply inclination periodic extra payments on top of the deposit whenever you bum. This has a nearly the same effect but doesn't follow you into committing the extra $215 every month. When self do this, be unyielding up make the extra pains absolutely incomparable from your regular loan payment, and clearly communicate so that the lender that IN BULK of the extra payment is to be applied on route to reducing the accommodation principal. Despite exotic these steps I've still had problems with lenders misdirecting the payments, extremely remain watching for!<\p>

If you're really ambitious - and can comfortably afford adventure so - ethical self can refinance to a 15-year bi-weekly loan AND also make additional overpayments. This option is in behalf of you over-achievers. (You instruction who self are).<\p>

Refinancing isn't in preparation for every one<\p>

Despite its advantages, refinancing a mortgage isn't now everyone. If, for for instance, better self contemplate to move and handle your home within two or three years, the divestment of refinancing would probably outweigh the benefits. Then, if current mortgage interest rates are significantly higher than your up-to-date rate, refinancing might not remain advantageous.<\p>

Nor would it the like of focus till refinance if you are 20 or 25 years into repaying a 30 decennium mortgage. By that time she choosing have acquitted the lender most pertinent to their superiority and are now rapidly repaying principal; it wouldn't make significance to pray for quarter all that hard work via refinancing in passage to a loan that now has a longer repayment timeframe, wherewith obese up-front interest payments again, unswerving if self is a 15-year lend-lease.<\p>

And pertinent to course, flush if the above issues don't apply, but you don't dream up you could come through the extra monthly payment amount ($215 in this deterrent example), suppose moneymaking periodic and also payments whenever you can instead. Occasional so project exanimate help you turn the tide in the battle upon the rule in connection with 78s.<\p>

* This example assumes a $100,000 30-year put in hock with a 5.0% bulletin cut rate, a $100,000 15-year mortgage at a 4.25% rate, and approximately 1 year between the time of obtaining the 30-year mortgage and refinancing it to a 15-year mortgage.<\p>

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How do I maximize my mortgage payment privileges?

No one likes the idea of spending more money on interest then what you absolutely have to.  However, making the most cost effective decision, to deter interest, is not always so obvious!  Interest and amortization have a way of playing with the numbers.  How to maximize your cash, and find yourself closer to mortgage free, is what’s most important!  Let me prove to you how you can save yourself a significant amount of money, by simply applying your cash in the right order!

Every commitment letter gives opportunity to prepay your mortgage anywhere from 10% to 20% a year, depending on the lender.  This privilege is in addition to your right to pay your mortgage payment in different intervals, besides the traditional monthly payment, including: semi-monthly, bi-weekly, accelerated, or weekly accelerated.

It is commonly ‘believed’, that if you have 20% of your purchase price available when you purchase your real estate, your best option is to put that sum directly towards the down payment.  Logically, you would think that this makes the most sense.  After all, how can you pay interest on money that is not even borrowed?  Well, the proof is in the bottom line, which is everyone’s concern, so let’s prove what really is true!

Below is a comparison using a 20% down payment, versus 5% down, and then maximizing on your payment privileges.  Take a look at our mortgage details:

Purchase Price: $300,000

Interest Rate: 3.09% over 5 years

Amortization: 25 years

Payments: Bi-weekly accelerated

20% Down Payment: $60,000

Scenario 1 demonstrates what happens when you sink your 20% in immediately at the time of purchase:

5 years later, your mortgage payout is $199,005.91.  Along with the option to use bi-weekly accelerated payments, you’ve shaved down the amortization from 25 years, to 22 years, meaning you’ll be mortgage free 36 months sooner!

Scenario 2 demonstrates what happens when you put the minimum 5% down, $15,000, and pay your mortgage insurance premium.  After taking possession of your real estate, you then put the remaining $45,000, as a lump sum deposit.  You’ve now taken full advantage of your prepayment privilege, and the deposit has gone directly to your principal!  Not a penny of this cash is applied to interest.

5 years later, your mortgage payout is $190,477.64.  Along with the option to use bi-weekly accelerated payments, you’ve shaved the original 25 year amortization, down to 17 years 8 months, bringing you 7 years, 4 months sooner to mortgage free liberty!!

Please keep in mind, your payments are somewhat higher in the second scenario, although, the benefits speak clearly for themselves!  The difference between these two options represents a savings of $8,528.27!!

Questions about your mortgage options?  Give me a call!

Blogged by Elise Hildebrandt, AMP, Mortgage Associate Broker Lic#316103 at The Mortgage Centre Brokerage Lic# 31547, Saskatoon Elise has been in the financial industry for 16 years.

Contact her at: [email protected] or @ www.elisehildebrandt.ca

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What Are Prepayment Options?

Prepayments, Principle and Privileges!

Did you know that when you sign your commitment letter to complete your mortgage, there are prepayment privileges? Generally, they are discussed, reviewed, and then casually mentioned over coffee with friends later on that day, before being completely disregarded.  This is due to the fact, that most people do not understand how they work, and why they should take advantage of them!

Advantages, you ask?  Yes!!  Within the guidelines of your lender, you have the option to pay down your mortgage faster, while paying less interest to the lender.  As you know, the lender makes money off of the interest you give each month on your mortgage; and your mortgage slowly dwindles downs, as only a portion of your payment is actually applied to the principle amount that you borrowed. What if I told you, that you have the freedom to choose to make a much bigger dent in your principle?  That's exactly what prepayment privileges are all about, and here are the most popular options available:

LUMP SUM DEPOSIT: 10% - 20% of your original mortgage balance can be deposited once a year, and the entire deposit is applied directly towards the principle amount.  Depending on the guidelines of your lender, this payment may have to be made within a certain date.

VAMP MONTHLY PAYMENTS:  Once a year, you can advise your lender to increase your mortgage payment, with the added amount directly applying to your principle.  The flexibility of how much you wish to increase your monthly payments will be laid out within the guidelines of your lender.

DOUBLE UP PAYMENTS:  This option is rarely used, but available, non the less.  For example, if your monthly mortgage payment is $500, you can ask the lender to double the payments to $1000 for a set period of time.

The benefits of the prepayment privilege are obvious!  Every dollar you choose to pay over the required monthly payment, goes straight to the principle of your mortgage.  Here's a snap shot of how this could affect your mortgage over 1 year, if you originally borrowed $250,000 @ 3.09% with 25 year amortization.  Take a look at the following:

1.  LUMP SUM DEPOSIT:  up to $50,000 per year

2.  VAMP MONTHLY PAYMENT:  Your payment would be $1,194.69, with an extra 20%, or $238.94 per month applied directly against principle.  In one year, that's an additional $2,867.28.

3.  DOUBLE UP PAYMENTS:  If you pay double the payment for 1 year straight, $14,336.28 would be applied directly against your principle!

In one year alone, you could deposit $67, 203.56 of straight principle on your mortgage.

Are there disadvantages to prepayment privileges?  None, whatsoever!  As always, you need to carefully read your commitment letter, to know what options your lender has made available.  Some lenders will allow you to use all 3 options at once.  Others will allow all three, as long as you do not exceed the overall 10% - 20% prepayment privilege.

You could find yourself free of your mortgage a whole lot sooner then you thought!

Questions about your mortgage options?

Blogged by Elise Hildebrandt, AMP, Mortgage Associate, Broker Lic# 316103 at The Mortgage Centre, Brokerage Lic# 315847, Saskatoon Elise has been in the financial industry for 16 years.

Contact her at:  [email protected] or @ www.elisehildebrandt.ca