Calculator Loan Review and Tips

A friend in Commonwealth of Australia recently seek advice on the usefulness or otherwise of a loan calculator. My friend was looking at your mortgage refinancing in Australia, however was not sure that long-term benefits of such a measure. I had heard of a loan calculator that can compare products and wanted to run your own scenario. We hunted down one loan calculator, however it was a simple “How much can I borrow?” loan calculator that requires you to enter your earnings and other liabilities or debts to develop their ability to borrow. The fact is that although a loan calculator gives you an idea of how much you put up Australia, other factors are allowed by the lender when assessing your loan.

Regrettably, a simple loan calculator has a limited scope. In Australia, the lender would not only be in your debt and revenue, however also the number of dependents who rely on that income, the time it has been in his current job and enjoying the income, savings history, and especially your credit history. Such calculator has the capability to specify certain amount of capacity to borrow. However, an individual will likely unable to easily obtain an approval on such loan application without having a good credit score.

While the simple loan calculator is not much use for purposes of my friend find a loan calculator to compare rates of interest of your existing lender to another lender who was considering refinancing. Again though, this calculator loan was strictly consider the impact of rates of interest in terms of variables. My friend was comparing your current real estate loan manager with one of the big four banks. The banking company had quoted a monthly fee, which was lower than that for its existing facility and this was confirmed when comparing rates of interest through the loan calculator. The rate of interest was slightly lower than the rate of mortgage manager.

However, when viewed the small print on the product details on the website of the banking company found that the top of the banking company’s interest rate would also seek a monthly fee of $ 8. She also would have to pay up transaction fees on your account. When you add the fees and the monthly figure, the monthly total was higher with the loan. Thus, while the loan calculator had indicated that it would be better for the refinancing, the reality is that this would not be the case at all.

Additionally, the loan calculator was not a factor in some of the benefits he was enjoying, particularly, 100% offset loan feature that allowed him to reduce his monthly defrayment significantly. By all means use a loan calculator as a guide, however before committing to any charge or defrayment of a deposit on a new purchase, consult a mortgage manager or other lender to make certain you and your loan calculator are on the right track. Before refinancing is always a good idea to talk with your existing lender.