Can You Estimate Weekly Repayments by Dividing by 4? What are the Benefits?
Mortgage weekly repayments benefit homeowners who want to pay the least amount in interest rate charges. The homeowner sends 52 repayments annually. When homeowners send frequent repayments, they chip away at the outstanding principal faster. As the principal shrinks, the amount that incurs interest rate charges shrinks too.
Thus, weekly repayments lead to a less expensive mortgage.
To calculate the new frequency, you can take monthly repayment and divide it by four. You can also take the annual amount and divide it by 52. Keep in mind that calculating the new amounts through simple math only leads to an estimate.
For example, a $500,000 home loan with a 3% interest rate and 30-year term renders a monthly repayment of $2,100 and weekly repayment of $486. However, if you use simple math, you receive different numbers. If you divide 2,100 by four, you receive 525. The differences between the calculations result from the way that interest compounds. Nonetheless, simple math leads to a solid estimate.
Homebuyers interested in nailing down more exact numbers benefit from speaking with our Mortgage House loan specialists. They have the tools to evaluate your financial circumstances and calculate potential loan terms. Mortgage House provides several online resources for free including calculators and downloadable guides. Plus, they have no strings attached.
Calculate Weekly Repayments Conclusion
To calculate weekly repayments, we recommend using our Mortgage House mortgage repayment calculator. In a pinch, you can estimate the repayments through simple division. Nonetheless, to explore your options, contact our loan specialists.