1. What is the House Loan Repayment Formula?

The house loan repayment formula calculates the fixed monthly payment (PMT) required to repay a loan over a specified term. It accounts for the principal amount, interest rate, and loan duration to determine the monthly installment.

2. How Does the Calculator Work?

The calculator uses the standard loan repayment formula:

Where:

• \( P \) — Principal loan amount (MYR)
• \( r \) — Monthly interest rate (annual rate divided by 12)
• \( n \) — Total number of monthly payments (loan term in years × 12)
• \( PMT \) — Monthly payment amount (MYR)

Explanation: The formula calculates the fixed payment needed to fully amortize the loan over its term, with each payment covering both interest and principal.

3. Importance of Loan Calculation

Details: Accurate loan calculation helps borrowers understand their financial commitment, compare different loan options, and plan their budgets effectively.

4. Using the Calculator

Tips: Enter the principal amount in MYR, annual interest rate in percentage, and loan term in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the typical home loan term in Malaysia?
A: Most home loans in Malaysia have terms between 20-35 years, though shorter terms are available.

Q2: How does interest rate affect monthly payments?
A: Higher interest rates increase monthly payments and total interest paid over the loan term.

Q3: What is the current average housing loan rate in Malaysia?
A: As of 2023, rates typically range from 3.5% to 4.5% depending on the bank and loan package.

Q4: Can I reduce my total interest payment?
A: Yes, by choosing a shorter loan term or making additional principal payments when possible.

Q5: Does this calculator account for other fees?
A: No, this calculates only the principal and interest. Actual loans may include insurance, processing fees, etc.