Only the borrower can answer that question.
You need to compare the cost of the repayment penalty and the benefits of having the loan (such as deductible interest) vs. the benefits of paying off theloan such as increase cash flow. Do that analysis and determine the best use of your money.
Perhaps. The difference in the prepayment penalty and the amount of interest paid until the loan is satisfied is a major consideration. If the difference is small,early payoff might not be the best option.
It depends. One has to look at what the interest rate is, the amount of the term remaining, the amount of the prepayment penalty and the cost of the source of funds to pay it off. There is no one correct answer, sorry.
It would depend on whether the savings gained by "retiring" the loan outweighed the disadvantages posed by the pre-payment penalty. Most loans have pre-payment penalties which expire after a short period of time. On mortgage loans, the typical pre-payment penalty runs 1, 3, or 5 years.
No...and they make sure of that. Prepayments are there to make sure the Lender gets every penny they would have received if you stayed in the contract. Which means interest. If you pay out the loan you will pay interest and principle. Payments to your principle balance is equity.
If the pre-payment charge is considerably less than would be the amount of interest that would be paid through the duration of the loan, then it could be beneficial financially, but might also have a minor and temporary affect on the borrower's credit score.
repayment period of foreign loan
Some funding programs require you to prepay your business loan, lease, or cash advance at any time without penalty charges incurred. Every agreement will contain a specific payoff and early repayment clause; however there may be no penalty for paying early.
Unless there is a tax benefit that you want/need, you should retire a loan as soon as possible. I am assuming that there is no prepayment penalty, which may impact your decision. It is costing you money (in interest) while you have the loan.
The student loan calculators shows the repayment amount and the salary needed to afford the repayment. Traditional loan calculators only show the repayment amount and schedule.
Any of your Australia lenders will be able to lead you to the Aussie Home Loan repayment calculator.
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