![]() ![]() The calculation of the loan against the property schedule is based on amortisation. The loan against property is also called the mortgage loan as it is secured against immovable property. The loan against property has no end-use restrictions, and you may use the loan for individual needs. The loan against property interest rates is lower as compared to an unsecured loan such as a personal loan. The pledged asset remains as collateral with the lender until you repay the total loan against the property amount. ![]() The loan against property EMIs are made up of both, the principal and the interest portions. Longer amortization terms result in lower required mortgage payments for fully amortizating mortgages, all other things being equal.The loan against property is secured against an asset such as a residential house or a commercial premise. Your required mortgage payment for fully amortizing mortgages is the amount that would result in the mortgage being closest to being paid off by the end of the amortization term. Term The amortization term is one of the key factors that determine your required mortgage payment. The principal balance represents how much you owe on the mortgage. Principal The portion of your mortgage payment that is used to pay down the current balance of your mortgage. Loan Amount The initial principal balance or your mortgage at closing. The interest rate on your mortgage may change or remain the same depending on the type of loan you have. Interest Rate The percentage of the principal balance of your mortgage that determines how much interest you must pay. The Total Interest for a mortgage is the sum of all interest paid over the life of a loan. Interest The portion of your mortgage payment that is due to the interest rate being applied to the principal balance. Extra Payment Start The number of months from now that you plan to make your first extra payment of principal. For example, borrowers who receive a regular bonus or tax refund may wish to use them to pay down the principal balance of their mortgage. Others may choose to pay extra principal on a quarterly, semi-annual, annual or one-time basis to better match the times when they have more cash available. Some homeowners add an extra payment of principal to their mortgage payment every month. Extra Payment Frequency The frequency is how often you plan on making extra payments of principal. Extra Payment End The number of months from now that you plan to make your last extra payment of principal. You should also check with your mortgage servicer to make sure that extra payments you make do not trigger a prepayment penalty. Refer to your mortgage documents, including the prepayment penalty rider, if any, to determine if this applies to you. Some loans restrict how fast you can pay off your loan and may even have prepayment penalties. To get the financial benefit of paying down your principal balance early, direct your mortgage servicer to use the extra payment to pay down the mortgage balance immediately rather than giving you a credit towards your next scheduled payment. ![]() Mortgage Calculator - Help Extra Payment The amount of additional principal that you plan to add to your mortgage payment. ![]()
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