Ing Home Loan Repayment Calculator Extra Payments

ING Home Loan Repayment Formula:

\[ PMT = P \times \frac{r \times (1 + r)^n}{(1 + r)^n - 1} \]

Loan Amount (P):

AUD

Annual Interest Rate:

% p.a.

Loan Term:

years

Extra Monthly Payment:

AUD

Standard Monthly Payment:

Payment With Extras:

Time Saved:

Interest Saved:

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1. What is the ING Home Loan Repayment Calculator?

The ING Home Loan Repayment Calculator estimates your monthly mortgage payments, including the impact of making extra payments. It helps you understand how additional payments can reduce your loan term and total interest paid.

2. How Does the Calculator Work?

The calculator uses the standard loan repayment formula:

\[ PMT = P \times \frac{r \times (1 + r)^n}{(1 + r)^n - 1} \]

Where:

$ PMT $ — Monthly payment
$ P $ — Principal loan amount (AUD)
$ r $ — Monthly interest rate (annual rate ÷ 12)
$ n $ — Total number of payments (term in years × 12)

Extra Payments: The calculator then applies your specified extra payment amount each month and recalculates the amortization schedule to show time and interest savings.

3. Importance of Extra Payments

Details: Even small extra payments can significantly reduce your loan term and total interest. For example, an extra $100/month on a $500,000 loan at 6.69% could save over $100,000 in interest and cut 5+ years off your loan.

4. Using the Calculator

Tips: Enter your loan amount, current interest rate (ING's typical rate is 6.69% p.a.), loan term in years, and any additional monthly payment you plan to make. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How accurate is this calculator?
A: It provides estimates based on your inputs. Actual payments may vary slightly due to rounding or specific loan terms.

Q2: Can I change my extra payment amount later?
A: Yes, most ING home loans allow you to vary extra payments, though some fixed-rate loans may have restrictions.

Q3: Are there fees for extra payments?
A: ING typically doesn't charge fees for extra repayments on variable rate loans, but fixed-rate loans may have limits.

Q4: Should I invest instead of making extra payments?
A: This depends on your interest rate vs. expected investment returns. Paying down a 6.69% loan is like earning 6.69% after-tax return.

Q5: How often can I make extra payments?
A: With ING's variable rate loans, you can usually make extra payments anytime. Fixed-rate loans often limit extra payments to $10,000-$30,000 per year.