Your Questions About Home Loan Calculator

Charles asks…

Home equity loans, why is it not paying off the loan?

My wife and i borrowed 45000 to fix up our house… we have used 42000 of the money,,, We have been paying on it for about 7 months… We have paid 2000 to the inttrest and 100 to the principle.. When will we start paying off the loan instead of paying the intrest/?

John answers:

Home Equity loans are typically interest only – that means you are only paying the interest and not the principle. The interest only period is usually 5 to 10 years.
Your statement (if you get one) or payment coupon may have a space to specify what portion of your payment to apply to principle. If not , give the company a call and ask them how to make sure your payment is applied correctly.
Something to be cautious about… At some point after the interest only period you will have to start making principle and interest payments. If you only have a few years left then your payment could go up a lot at that point.
A couple of thoughts on how to avoid this… Find out if your loan has a “lock” feature – many Home Equity loans do. If it does you can probably lock in the interest rate for all or a portion of the balance and start making principle and interest payments on it. Your payment will be higher – but you won’t be stuck with a MUCH higher payment or a balloon payment later.
If there is no lock feature, then find a loan calculator on the web (just google loan calculator) that will let you run an amortization schedule. Plug in your balance and approximate interest rate (this will be an estimate since your rate is adjustable so estimate high) and plug in the term (how long you want to take to pay it off.) This will tell you how much to pay monthly to pay the loan off. Ou will still have to pay attention to your statements in case the interest rate goes up. If it does you will have to re-run the calculation.

Maria asks…

Can you get a home loan during a mature apprenticeship?

Hit here,

Well here is the secnario. My partner is doing an apprenticeship in Locksmithing and he is classified as a mature aged apprentice (he’s 23). He currently is earning $528p/w during his first year. I am brining in about $20,000p.a too. My question is if we are about to save up 10% deposit at least for a house and land package for about $250,000 (in Melton, Melbourne). Will we be considered for a home loan in a couple of years once we have saved enough for a deposit even though he is only on his apprenticeship?

John answers:

Applying for home loans requires you to compare the offers available from different lenders so that you can have the best deal on home loans. With the loan market being flooded with offers, you can always choose to compare the home loan interest-rates online. Lenders have provision of online calculators and quotes on their websites, which help customers in getting to know the interest-rate that would be applicable if they apply for a home loan.


Linda asks…

Calculating Home Loans?

I need a little help finding out home loans. I am working in Excel and I have:
Maximum Affordable Monthly Payment: $2,200
Annual Interest Rate: 6.50%
Compounded: 12 times per year
How can I figure out the amount for a $200,000 mortgage at 10, 15, 20, 25, and 30 years

John answers:

Go to yahoo finance they have a mortgage Calculator on their page

Donna asks…

VA Home Loan question?

Ok, so I was plugging in information on the VA website to see roughly how much we could get approved for. We looked at a house that was 156000. When I plugged in the information into “how much I can afford” into the calculator (putting in the desired loan amount – I used 160000- and our current debts) it said we needed a minimal annual salary of 41k (we make well over that).

When I plugged in basically the same information into “how much can I borrow”. It came up with 100k (we can’t afford more than $400/month mortgage, which is less than half our rent currently).

Our desired mortgage would keep us well under the 41% debt to income ratio and our residual income is above the minimum as well.

We talk to a realtor this weekend. But I’m curious now.

Any help ?
Of course :) we use USAA for everything.
Of course :) we use USAA for everything.

John answers:

You may consider using something like this home affordability calculator.


What you qualify to borrow and what you feel you can afford are likely two separate things. This calculator offers conservative, moderate and aggressive options to give you a range.

But like you’ve discovered, in order to keep your monthly payment lower, you’ll probably want to stay on the conservative side (around $100k). As this will likely effect your choice of houses and areas, you’ll have to decide if you want to go with a higher monthly payment to get the house you want, or settle for something more within your desired monthly payment. It’s always a trade off, and never an easy decision to make. Good luck!

Robert asks…

help with a home loan?

Is there a place or way to find out how much me and the hubby would pre-qulify for on a home loan. I dont want ot fill out all the loan paperwork yet until i know how much we can get. We are meeting our mortgage broker this weekend but i just am curious and want t oknow now.

John answers:

Try this.
It’s an interactive calculator that I found on Google.
It let’s you play around with numbers :)

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