For a Du Refi Plus Max Worksheet to be effective in helping you to work out the maximum amount of your repayments, it is important that you use it as a guide rather than simply blindly following it. So here’s a breakdown of how to work out the maximum amount you will have to pay – and how not to use it for personal gain.
The first step is to look at how much you will have to repay each month. If you can’t work out the exact figure, then you should use the ‘Default Loan Plan’ based on the loan amount. This gives a rough indication of what you will have to repay, although it isn’t a precise calculation.
Then you can use the repayment value calculator on the application form. This works out the total amount you will have to pay, including any fees and interest that may apply.
If you think you may have to make extra payments in the future, for example if you have an arrangement with your bank to take out another loan or if you are only just finishing a loan, then you should use the calculator to work out the difference between your original repayment amount and the repayment amount you will be required to make once you’ve completed your second loan. Once you know this, you can make sure you’re only borrowing enough to cover all your needs rather than overspending.
It is important to use this Worksheet to work out the maximum loan amount when you apply for a new loan. The reason for this is that the loan companies often require you to take out a larger amount of money for your new loan, but they don’t charge any interest. They want to ensure they have sufficient funds to pay you back – and so they take this step to make sure they make a profit by charging a small amount of interest on your new loan.
Of course, you can use the calculator to see how much money you need to borrow to buy a vehicle but also to check how much a vehicle costs and to see whether you can afford to repay the loan at an agreed rate of interest. You don’t want to borrow more than you can comfortably afford.
Then make sure you take a look at how much your repayment sum will be before any fees or interest is added. These can sometimes add up quickly, so you should make sure you don’t get into the situation where you end up paying too much in fees, interest, and other charges.
It’s not unusual for a person to have more than one application for a loan, which means there’s a chance that the company you apply to could end up rejecting your application because you do not fit the criteria for a certain type of loan. The Du Refi Plus Max Worksheet can help you know if your circumstances are likely to cause a problem in your application.