Hi everyone.

1. Ive read with interest some of the threads, such as flexi-loan/fixed-loan etc. What I want to know is how do you calculate the monthly repayment for a home loan? For example, I take a 200K loan, with 4% interest, 30 year tenure (to use the examples given in other threads), how do I come up with the monthly repayment? As well, how much will be for interest, and how much will be for the principal? Can someone show me how it is done, and maybe provide a program/website here that would help calculate these?

go the iproperty, click on the home loan and financind section then look for the home loan calculator. good luck!

My rule of thumb.

A 100k house should give me a rental income of 1k.

I have been to the iproperty website. It has calculated for me the monthly repayments.

But what I would like to know is how is it calculated?

Say I take a $10000 loan, with 10% interest, for 10 years, with payments in equal monthly amounts (as are all the home loans, I think)

Monthly repayments, interest, principal repayments. I am really curious how it works, as I believe it is the basics, and any changes in interest rates, early or 'extra' payments on top of the monthly payments, evaluation of different mortgage packages etc, can be done or be better understood. Any website, or program that would show me how it is done? In a table if possible, or a step by step guide.

In order to calculate home loan repayment you may have to use a special financial calculator as the calculation is not straight forward.

Assuming loan amount : 200K
Tenure : 30 yrs
Interest rate : 4%
Your monthly repayment will be : 955.00 a month for 30 yrs.

GIYBF, google is your best friend.

Housing loan is the reverse of fix deposit.

If you have a deposit of 10k @ 10%, every year you earn $1k of interest.
Every year taking out 1k, would still leaves your 10k earning interest.

If you take out $100 every month, works out to be $1.2k per year.
That would reduce the principle of your 10k every year.
After 216 months would take out all of your money.

Same as taking a $10k loan and repay all after 216 months.
By then your loan interest would be $11.6k.

Also. scroll down this topic (post #2): http://forum.lowyat.net/index.php?showtopi...&#entry14239555 for an attached excel for calculation of loans in excel format.

This post has been edited by b00n: Feb 8 2009, 11:56 PM

Thank you,the tables are useful. Shows you how much interest you are paying for the whole loan period, which is very surprising ( RM143,000 total interest for a RM 200,000 loan ). So a 200000K loan, 30 years, 4% interest would require 955 per month in payments.

What if BLR changes(meaning interest changes), lets say upwards, then total loan amount would change right? Any programs/excel/sites for these?


Logically if you've dumped in RM50k the next month your monthly repayment should reduced to RM300.07 but the fact is flexi doesn't work that way. You'll still have to pay monthly RM599.55 till you finish finish paying down your principal.
But obviously the principal owed would be less if you deposited RM50K, and therefore your principal will be paid down earlier than the tenure? How does that work?
For example, I took a 200000K loan, 30 years, 4% interest, and then dumped 100K into the Current Account, then would the loan essentially be 100K, 30 years,4% interest now?

Im interested to know exactly what methods are used so that I could calculate them myself in the future


For those of you who are interested in the amortisation formula:

http://www.vertex42.com/ExcelArticles/amor...alculation.html

Also,

http://www.libraryofmath.com/introducing-l...ortization.html

Cheers!

This post has been edited by benjinn: Feb 9 2009, 02:43 AM

Hi benjinn,



To be frank, its not that flexi doesnt work that way... None of the mortgage loan ins Malaysia work that way as far as i know.

Mortgage loan in Malaysia has a fixed installment pay on monthly basic. The Installment will serve the interest portion before principal deduction. However, with the extra amount you dump that reduces your principal will then also reduces the interest portion charged on you, since Interest is calculated based on your principal.

So it is to say, if your installment is at RM 600 per month, and RM 450 goes into interest with the remaining RM 150 goes into principal. With a capital prepayment, your interest portion will be lowered down say, to RM 350... and so RM 250 will goes into principal reduction.

In this scenario, your loan tenure or loan period will be shorten.



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