Mortgage overpayment is a payment process for your mortgage loan that will allow you to pay extra amount rather than your usual monthly payment along with the interest. This mortgage overpayment will help you to pay your amount earlier so that the term period (months) of the loan repayment will be reduced and hence you can save the interest for those months. Use this calculator to find the monthly payments and interest before and after you pay extra money.
Mortgage overpayment is a payment process for your mortgage loan that will allow you to pay extra amount rather than your usual monthly payment along with the interest. This mortgage overpayment will help you to pay your amount earlier so that the term period (months) of the loan repayment will be reduced and hence you can save the interest for those months. Use this calculator to find the monthly payments and interest before and after you pay extra money.
For a loan amount of Rs. 50,000 lended for 2 years at an interest rate of 10 %, the monthly payment can be calculated as
Monthly Payment = (50000 * (1 + (10/1200)^2 * (10/1200)) / [(1+(10/1200)^2 - 1)]
= (50000 * (1 + 0.008333)^2 * (0.008333)) / [(1 + 0.008333^2 - 10]
= Rs. 2307.25
So, initially you will be paying Rs. 2307.25 per month along with the interest. If you pay Rs. 1000 extra you will be paying Rs. 3307.25 as monthly payment and your payment will end in 1 year and 5 months. You can find the mortgage overpayment schedule using the above calculator.
