The iBuyNew Principal and Interest / Interest Only Calculator allows you to work out your ongoing costs of your loan based on the loan term, the frequency of payment and whether you decide to pay principal and interest or interest only repayments. We can also show you the total repayments over the life of the loan as well as the total amount of interest paid.
To use the Principal and Interest / Interest Only Calculator, please input all the relevant information in each of the required fields and click on the Calculate button. This will provide you with the results for monthly repayments, total cost of the loan and total interest payable. You can also view the amount of interest and principal left to pay against the number of years in the graph.
There are many different reasons as to taking on a Principal and Interest loan or an Interest Only loan. Many property investors will prefer to take on an Interest Only loan as they want to pay as little as possible towards the property, in order to take advantage of tax savings, whilst use this money towards building a strong property portfolio instead.
An owner occupier however may prefer a principal and interest loan if they are looking to pay off their home that they live in.
There are many advantages and disadvantages to both loan types, and it is important that you understand what is involved first before committing to a loan. To find out more information about the type of loan you should use when buying a property, it is best to speak to a Property Consultant at iBuyNew who can walk you through this with ease.
Get in touch today by calling the team on 1300 123 463.