Mortgage Issue

wjiao

Hi, All,

Could I know if it is wisely to pay the mortgage monthly or weekly? Is the interest rate calculated daily? Any information will be appreciated. Thanks a lot.

goldenapple

http://www.oursteps.com.au/bbs/v ... hlight=%BB%B9%B4%FB

看看这个。。。

wjiao

Thanks for your nice information. All the best wishes.

wjiao

I did a small calculation on line. If I put weekly payment, let us say $612; if I put monthly payment, it is $2448, it confuses me. Because (612*52)/12=2652. it means I pay more if I follow weekly payment. Very confusing. Any advice or suggestions?

chris605

fornightly

wjiao

黑山老妖

原帖由 wjiao 于 2007-7-25 17:04 发表
I did a small calculation on line. If I put weekly payment, let us say $612; if I put monthly payment, it is $2448, it confuses me. Because (612*52)/12=2652. it means I pay more if I follow weekly  ...

That's why you pay off your loan faster using weekly/fortnightly payments compare to monthly payments.

Because for some bizzar Reason the banks think 1 month = 2 fortnights = 4 weeks.
So according to banks' logic 1 year = 24 fortnights = 48 weeks.
In reality 1 year = 26 fortnights = 52 weeks
Now you know why you pay off loan faster with fortnightly or weekly repayments? Because you pay more!

[ 本帖最后由 黑山老妖 于 2007-7-26 12:19 编辑 ]

wjiao

wjiao

hi, guys....any idea about coming pressure on rising interest rate......it looks more than likely the interest rate will go up due to inflation pressure.....

黑山老妖

It will go up. But most likely will be next year.

wjiao

But from the news, it says it will go up very soon....in coming month..... and if you check the fixed mortgage rate, it has already gone up quite a bit...... Any the economic analysis on this prediction is negative......

chenzy0513

Try fixing your rate.

And I still think the rate could only go up after election. After all, our annual CPI is still at 2.1% which is close to the bottom of RBA's target range.

wjiao

It sounds reasonable......Reserve bank is quite independent from the government, but sometimes they refer ABS cpi numbers....... hope things can do well.......bloody election.....