Calculating a mortgage or home loan break fee can be quite complicated, however with our easy to use tool we do all of the hard work for you. When it comes to home loans or mortgage break fees there are four key factors which influence the end fee amount. These factors are a) what the remaining balance of the loan is, b) what the change in the wholesale interest rate has been since the loan was taken out,c) what the remaining term is in years and lastly if the bank or lender charges a set fee like an administration fee d). An example of this is if you have a loan with $500,000 remaining on the balance (a) that you took out at 5.00% that is due to be broken at the new wholesale rate of 4.00% (b) with 3 years remaining on the term (c) plus the administration fee (d). In this case it would be $500,000 * (5.00% - 4.00%) * 3 which ends up as $500,000 * 1.00% * 3 = $15,000. If the rate since the loan was taken out has increased there will likely be no rate related fee however the provider may charge a one off administration fee.
Are you looking for help finding the best mortgage rate for your new home loan? Using a mortgage broker will allow you to receive a better loan interest rate without the need for negotiation. We recommend Mortgage Repayment Calculator who have proven results in reducing clients interest rates by as much as 45 points off the advertised rate. Click here to visit their website.
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