How Do I Calculate Weekly Repayments from a Monthly Repayment?
The traditional mortgage includes a monthly repayment. However, it’s possible to finagle with the repayment frequency. It’s possible to make weekly repayments. Increasing the frequency favors the homeowner. The more they chip away at the principal, the less they pay in interest rates.
To calculate weekly repayments, you can complete some basic math. Take your total mortgage and divide it by the loan length. It’s usually 30 years. Now divide the amount by 52 since there are 52 weeks in one year. The result is your weekly repayment.
For more precision, we recommended using our mortgage repayment calculator. Two things to remember, the interest rate clock never stops ticking. The second is that more frequent payment lowers your overall interest rate cost.
Here’s an example – If you borrow $300,000 at a 4% interest rate over 30 years, the monthly repayment becomes $1,432.24. If you opt for weekly repayments, each payment equals $330.29. When you multiply $330.29 by four, you have a total of $1,321.16.
This gives you a savings of $111.08.
Over 30 years, the savings add up. It makes the difference between borrowing money for a renovation or upgrade, or not.
The savings can go toward basic everyday expenses or a child’s education fund.
Our calculator is free to use. Plus it has no strings attached. After exploring a few scenarios, you’ll understand your borrowing capacity and possible repayment amounts.
Try our mortgage repayment calculator.
Calculate Weekly Repayments
To explore setting up a different repayment structure, Mortgage House loan specialists can help you calculate weekly repayments. For more information, contact our team.