petrarankin replied to the topic Interest Only Loans & Equity in the forum No Subject 21 years, 5 months ago
Interest only loans are calculated on the daily balance of the debt. So if you pay off a large chunk of the principal the balance will reduce accordingly and your interest payments will reduce by the same proportion.
Petra
petrarankin replied to the topic Interest Only Loans & Equity in the forum The Treasure Chest 21 years, 5 months ago
It is always possible to make lump sum repayments on interest only loans, but depending on the financial institution you are with they may charge you a fee to do this. The cost can range from nothing to a full break fee costing thousands of dollars so you should probably scrutinise your loan agreement pretty carefully first. Fixed loans usually…[Read more]