How Does Home Loan Repayment Work?


Are you having difficulties understanding what home loan repayments work? Most people get confused because there are plenty of rules and repayment plans to choose from, and they cannot decide which works best for them. In this article, you’ll understand what home loan repayments are and how they can impact your mortgage.

Loan Repayments

Home loan repayments have different structures depending on the client. You may pay for your loan in several ways; weekly, bi-monthly, or monthly. Whichever you choose, ensure that you can follow through. 

Each payment option determines how much you’ll be paying and how long you’ll be paying for your home. You may use a home loan repayment calculator to determine the amount you should pay depending on your chosen payment scheme. 

1. Weekly Repayments

When you choose weekly payments, your total mortgage will be divided by 52, the total number of weeks in a year. The amount you get is your weekly total and may help you save thousands of dollars in interest compared to when you pay bi-monthly or monthly. 

But weekly repayments may be tricky, especially if the amount is too expensive for you or your salary is given bi-monthly. You may prepare in advance once you have calculated the weekly payment so you won’t miss a payment deadline.

2. Bi-monthly Repayments

If you choose bi-monthly repayments, you might have a higher interest than weekly payments. Most homeowners choose this payment scheme because they receive their salary every two weeks. 

It’s easier to budget your income when you choose a payment method for your mortgage, and you won’t miss a single payment when you prepare beforehand. So, don’t hesitate to calculate your bi-monthly payments and see if the amount fits your budget.

3. Monthly Repayments

Home loan monthly repayments may have the biggest interest rates compared to other options. Most people prefer monthly payments since they can list every expense and budget a month’s earnings. If this is your case, you may choose monthly repayments. 

Remember that it is you who should decide on what your home loan repayment plan should be. This way, you can control your spending and set aside money for your monthly dues. You can always go back to your home loan calculator to see how far you’ve come and how much longer you need to pay for your home loan.

Extra Payments

Aside from your weekly, bi-monthly, or monthly payments, you can arrange for extra payments here and there. You may pay for the principal amount if you have extra income and want to cut back on your loan payments. 

Ask your lender to deposit the extra payments to your principal amount, and you’ll be able to save a lot of money by making these small payments. Also, you may lessen your time paying for your loan. 

Calculate Your Home Loan Repayment Today!

When you’re confused about your home loan repayment plan, you may always use a loan calculator to see how much more you need to pay. If your payment scheme is clear, you won’t have trouble catching up with payments, so calculate your loan now!


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