Sentences with phrase «increase over the repayment period»
The standard repayment includes fixed payment amounts and up to ten years to repay; other plans include graduated payments, which start small and increase over the repayment period as your income increases.
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Extend your repayment period up to 30 years for the potential of a lower monthly payment amount, but understand that this may increase the total amount you will pay over the life of the loan.
Each option carries its own array of loan terms, such as time period for repayment and whether the monthly payment amount increases over time.
Stretching out your loan repayments over a longer period of time means that your overall repayment costs could increase dramatically — particularly if you don't end up qualifying for loan forgiveness (see comparison chart at bottom).
However, it can also lengthen the period of repayment and therefore increase the total amount you will pay in interest over the life of the loan.
An increase in your monthly payment will reduce the amount of interest charges you will pay over the repayment period and may even shorten the number of months it will take to pay off the loan.
If you opt to refinance to obtain a longer repayment period, however, your monthly payments will decrease, but the total amount of money you pay over the duration of your loan will increase.
As you can see from the chart above, choosing a shorter repayment period (resulting in an increased monthly payment) can lead to big savings over the life of your loan.
Extend your repayment period up to 30 years for the potential of a lower monthly payment amount, but understand that this may increase the total amount you will pay over the life of the loan.
These programs can make your monthly payment much more affordable, stretching your payments out over a longer period of time can increase your overall repayment costs.
Over long periods these debt burdens slowly increase and debt repayments begin growing faster than incomes.
While the 2 % increase in the interest rate on a R500 000 home loan only results in R670 increase in the monthly repayment, it adds a staggering R161 158 of additional interest payable over the 20 year period.