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?

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.

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