Bond recapitalisation calculator

Mike Hoxbig

Mike Hoxbig

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Is there one? Can't for the life of me find anything, or maybe I'm searching for the wrong thing.

Let's say I want to pay R1m into the bond, and capitalise it to reduce the monthly installment. Is there a calculator for this to show what the new installment would be?

The only ones I've found for making an additional lumpsum payment, seem to recalculate the duration of the term, which is useless to me. I want to know how much I need to put in, in order to reduce my installment by a certain amount...
 
Mike Hoxbig said:
Is there one? Can't for the life of me find anything, or maybe I'm searching for the wrong thing.

Let's say I want to pay R1m into the bond, and capitalise it to reduce the monthly installment. Is there a calculator for this to show what the new installment would be?

The only ones I've found for making an additional lumpsum payment, seem to recalculate the duration of the term, which is useless to me. I want to know how much I need to put in, in order to reduce my installment by a certain amount...
Click to expand...
do you really want to do this, I would rather dump the R1m in and kill interest leave the pmt alone. With self discipline you could even pull R5k a month from that add that to your normal account and create a pseudo reduced payment

Thats the power of a flexi bond. also in short every R1m is typically R10k or so a month difference
 
Mike Hoxbig said:
Is there one? Can't for the life of me find anything, or maybe I'm searching for the wrong thing.

Let's say I want to pay R1m into the bond, and capitalise it to reduce the monthly installment. Is there a calculator for this to show what the new installment would be?

The only ones I've found for making an additional lumpsum payment, seem to recalculate the duration of the term, which is useless to me. I want to know how much I need to put in, in order to reduce my installment by a certain amount...
Click to expand...
There is an Excel addin for this
 
Snyper564 said:
do you really want to do this, I would rather dump the R1m in and kill interest leave the pmt alone. With self discipline you could even pull R5k a month from that add that to your normal account and create a pseudo reduced payment

Thats the power of a flexi bond. also in short every R1m is typically R10k or so a month difference
Click to expand...
Yep, at the moment cash flow is more important.

I'm thinking of doing a bit of both - dump R1m into it, capitalise R800k to free up cashflow, leave R200k in to reduce the term while being available for emergencies...
 
Mike Hoxbig said:
Is there one? Can't for the life of me find anything, or maybe I'm searching for the wrong thing.

Let's say I want to pay R1m into the bond, and capitalise it to reduce the monthly installment. Is there a calculator for this to show what the new installment would be?

The only ones I've found for making an additional lumpsum payment, seem to recalculate the duration of the term, which is useless to me. I want to know how much I need to put in, in order to reduce my installment by a certain amount...
Click to expand...

Try this one and use the local data https://www.nationwide.co.uk/mortgages/mortgage-calculators/overpayment-calculator/
 
Just reduced the loan amount by the amount you want to capitalise it by and it will calculate the payment for a loan of that size.

I.e no point in putting a loan of 1 million and an additional payment to capitalise of 200k. Just put in 800k as loan.
 
Excel?
Shouldn't take you more than 5 min to do one from scratch.
 
Mike Hoxbig said:
Yep, at the moment cash flow is more important.

I'm thinking of doing a bit of both - dump R1m into it, capitalise R800k to free up cashflow, leave R200k in to reduce the term while being available for emergencies...
Click to expand...
no man dump in R1m and then do the psudo reduced payments.

Basically pull out R10k per month into your debit order account and let it run from there. then you have access to all the cash and the benefit of a "reduced" rate.
 
Snyper564 said:
no man dump in R1m and then do the psudo reduced payments.

Basically pull out R10k per month into your debit order account and let it run from there. then you have access to all the cash and the benefit of a "reduced" rate.
Click to expand...
No idea why I didn't think of this. Worked it out and my bond is paid in 6 years time, the net outflow is less than the reduced installments would have been, and there's still a little left over after 6 years. Thanks man...
 
3WA said:
Instead of capitalising, I strongly suggest taking the money and throwing a massive party where all of us are invited and there’s hookers.
Click to expand...
I am a certified financial and wealth advisor, and I approve of this advice.

I would bring cocaine but my dealer's WhatsApp messages are not delivering since yesterday. Fscker's ghosted me..!
 
Mike Hoxbig said:
No idea why I didn't think of this. Worked it out and my bond is paid in 6 years time, the net outflow is less than the reduced installments would have been, and there's still a little left over after 6 years. Thanks man...
Click to expand...
only a pleasure!
 
Snyper564 said:
no man dump in R1m and then do the psudo reduced payments.

Basically pull out R10k per month into your debit order account and let it run from there. then you have access to all the cash and the benefit of a "reduced" rate.
Click to expand...
Dumped the R1m in there, and now after the first debit order, the available balance decreased by some random amount, without me drawing anything out.

So now the available balance is R1m minus some amount = R980k-odd. Is this a temporary thing and it eventually goes back to R1m after a few days, so I can draw out the R10k?

Or is it gone now, in which case I may as well capitalise it to reduce the installment...
 
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Mike Hoxbig said:
Dumped the R1m in there, and now after the first debit order, the available balance decreased by the monthly interest amount, without me drawing anything out.

So now the available balance is R1m minus the month's interest = R990k-odd. Is this a temporary thing and it eventually goes back to R1m after a few days, so I can draw out the R10k?

Or is it gone now, in which case I may as well capitalise it to reduce the installment...
Click to expand...

With FNB it does tend to fluctuate at random times during the month so I would just give it some time.
 
Mike Hoxbig said:
Dumped the R1m in there, and now after the first debit order, the available balance decreased by some random amount, without me drawing anything out.

So now the available balance is R1m minus some amount = R980k-odd. Is this a temporary thing and it eventually goes back to R1m after a few days, so I can draw out the R10k?

Or is it gone now, in which case I may as well capitalise it to reduce the installment...
Click to expand...
the order is dump R1m in before debit order date, remove RX for debit order a day or two ahead of time rinse repeat

I vaguely remember that it may "reverse" in the next 2 weeks.
 
Snyper564 said:
@Mike Hoxbig maybe to add when you have added the amount in full the only amount to go off is the bank fees, like such

View attachment 1857068
Click to expand...
Thanks, yeah I gather that's what happens when it's fully paid off. The monthly fee is to keep the facility open.

Dumping this lumpsum in there brings it down from 16 years to just over 6 years. But technically it would be paid off in 4.5 years when the reserve balance = loan balance.

1761028866230.png

What tripped me up was my reserve balance decreasing without drawing anything from it...
 
Mike Hoxbig said:
Thanks, yeah I gather that's what happens when it's fully paid off. The monthly fee is to keep the facility open.

Dumping this lumpsum in there brings it down from 16 years to just over 6 years. But technically it would be paid off in 4.5 years when the reserve balance = loan balance.

View attachment 1857072

What tripped me up was my reserve balance decreasing without drawing anything from it...
Click to expand...
Gotcha, ppl dont realise the power of a flexi bond, killed my bond almost 4 years ago now with the money chilling waiting to be used if needed. All the additional bond money goes straight into monthly investments now.
 
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