 |
Earn Huge Returns |
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By paying a little extra each month |
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Earn Huge Returns |
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By paying a little extra each month |
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By paying an additional small amount each month towards your home loan, you can not only hugely reduce your total payment in years, you can also reduce the total property cost.
The following table illustrates the benefit to the bondholder of additional payments on a property of N$ 100 000.00, over a 20 year period at an interest rate of 15,25%
|
MONTHLY
PAYMENT |
ADDITIONAL
MONTHLY PAYMENT |
REDUCED
BOND REPAYMENT PERIOD IN YEARS |
TOTAL
AMOUNT PAID ON PROPERTY (INCLUDING INTEREST) OVER 20 PERIOD |
CASH
SAVINGS ON THE PROPERTY |
N$ 1 391N$ 1 402N$
1 414 N$
1 429 N$
1 447 N$
1 469 N$
1 495 N$
1 527 N$
1 566 N$
1 614 N$
1 675 N$
1 753 N$
1 853 |
N$ 00.00N$
11.00 N$
23.00 N$
38.00 N$
56.00 N$
78.00 N$
104.00 N$
136.00 N$
175.00 N$
223.00 N$
284.00 N$
362.00 N$
462.00 |
20 YEARS19 YEARS18
YEARS 17 YEARS16
YEARS 15
YEARS 14
YEARS 13
YEARS 12
YEARS 11
YEARS 10
YEARS 09
YEARS 08
YEARS |
N$ 333 901
N$ 319 598N$
305 477 N$
291 554 N$
277 854 N$
264 366 N$
251 134 N$
238 166 N$
225 479 N$
213 090 N$
201 016 N$
189 273 N$
177 876 |
N$ 00.00N$
14 303 N$
28 424 N$
42 347 N$
56 056 N$
69 535 N$
82 767 N$
95 735 N$
108 422 N$
120 811 N$
132 885 N$
144 628 N$
156 025 |
By
studying the these figures the following information will develop into obvious
facts.
**Example:**
A
house is bought for N$ 100 000.00, payable over 20 years with an interest rate
of 15,25%.
*
By
only paying the monthly-indicated bond repayment of N$ 1391.00 the house will
cost you
N$
333 901.00 over a period of 20 years.
* By
increasing your bond repayment with a mere N$ 104.00 to N$ 1 495.00 per month,
you will have a cash saving of N$
82 767.00 on
the property. Now the
property will only cost N$ 251 134 (instead of N$ 333 901.00) and will be fully
paid
within
14 years instead of
20 years.
*
By
increasing your monthly bond repayment of N$ 1 3 91.00 with N$ 462.00 to N$ 1
853.00 per month, the house will be
fully paid
within 8 years with a total cash saving of N$ 156 025. 00