This tool will help you calculate your potential remortgage savings with RBS.
How to Use the RBS Remortgage Calculator:
- Enter the amount of the loan you wish to remortgage in pounds sterling (£).
- Input the annual interest rate as a percentage (%).
- Specify the loan term in years.
- Click the “Calculate” button to determine your approximate monthly repayment amount.
How the Calculator Works:
This remortgage calculator uses the following formula to compute the monthly repayment amount:
M = P[r(1+r)^n]/[(1+r)^n-1]
- P is the loan amount.
- r is the monthly interest rate, which is the annual rate divided by 12.
- n is the number of payments (loan term in years multiplied by 12).
The result is an estimated monthly repayment amount. It’s important to note that this is a basic calculation and does not account for additional fees, insurance, taxes, or changes in future interest rates.
Limitations:
- This calculator provides an estimate and should be used as a guide to understand potential payments.
- Additional costs such as fees, taxes, and changes in rates may affect your actual repayment amount.
- Always consult with a financial advisor for a comprehensive analysis tailored to your specific situation.
Use Cases for This Calculator
Calculate Monthly Mortgage Repayments
Enter the amount you want to remortgage, the interest rate, and term to get an accurate calculation of your monthly repayments. This will help you plan your budget effectively and make informed decisions.
Compare Different Mortgage Offers
Input various scenarios with different loan amounts and interest rates to compare the monthly repayment amounts. This feature allows you to find the most suitable offer that aligns with your financial goals.
Estimate Total Interest Payments
Discover the total interest you’ll pay over the life of the mortgage by entering the loan amount, interest rate, and term. This insight will help you understand the overall cost implications of remortgaging.
Adjust Repayment Frequency
Choose between monthly, bi-weekly, or weekly repayments to see how different payment frequencies impact the total amount paid. This flexibility enables you to select a repayment schedule that suits your financial situation.
Determine Affordability
Use the calculator to determine the maximum loan amount you can afford based on your monthly income and expenses. This ensures that you don’t overextend yourself financially when considering a remortgage.
Explore Different Interest Rates
Experiment with varying interest rates to see how they affect your monthly repayments and total interest payments. This allows you to assess the impact of interest rate fluctuations on your finances.
Visualize Amortization Schedule
View a detailed amortization schedule that shows how your monthly payments reduce the principal amount over time. This feature provides a clear picture of how your mortgage balance decreases with each payment.
Factor in Additional Payments
Include extra payments towards the principal to see how they affect the total interest paid and the loan term. This feature helps you understand the benefits of making additional payments to pay off your mortgage faster.
Consider Refinancing Options
Assess the savings potential of refinancing by comparing your current mortgage terms with potential new offers. This can help you determine if refinancing is a financially viable option for your remortgage.
Get a Printable Summary
Generate a printable summary of your calculated results for future reference or to discuss with your financial advisor. This feature allows you to keep a record of your calculations for better decision-making.