I believe most of the house owner will take seriously to settle their housing loan as soon as possible because getting a house is one of the biggest financial commitment in our life. The earlier we settle the loan, the earlier we release our burden and of course will save more interest.
So I used the Adjustable Rate Mortgage Calculator to calculate when I can settle my loan with extra payment(prepayment) every month. The end result is very interesting and excited because I only need 9 years to settle my house loan.
Here is the planning of the payment, the total payment = monthly installment + prepayment
For example: the starting monthly installment is 1,649.24, so prepayment is 1,350.76 which sum up to RM3000 per month.
Year 1 = 3000 every month
Year 2 = 3000 every month
Year 3 = 4000 every month
Year 4 = 4000 every month
Year 5 = 5000 every month
Year 6 = 5000 every month
Year 7 = 5000 every month
Year 8 = 5000 every month
Year 9 = 5000 every month
Here we need to make few assumption as well:
- Rate remains fixed for first 3 years
- The rate increase every 12 months by 0.250%
- Interest rate cap at 12.000%
- You are displined enough to pay the total amount planned every month.
Of course, this is for the planning purpose and you might take consider some extra expenses such as family planning, travel, marriage, high debt due to high renovation cost which will caused you overspend and unable to hit the target.
So use this calculator to plan it and create your target as I already have my target:
To settle my house loan within 10 years. 
You can download the mortgage calculator from the link below.
Sourced from my personal blog:
