Interested in paying less interest and paying your home loan off sooner? You should be and it’s easier than you think.
The first thing to understand is that there are no real secrets to doing so. Its more about a change in the way you handle your finances.
Let’s look at some of them:
1. Make Fortnightly Instead Of Monthly Repayments – The interest on your loan is calculated on a daily basis, therefore the less you actually owe your financial institution each day the less interest you pay. Whilst these variations might appear insignificant on a daily basis, over the term of the mortgage can amount to savings of tens of thousands in interest. By halving your monthly mortgage repayment and paying it fortnightly you will automatically pay an extra repayment per year.
2. Pay More Each Month – Pay extra each repayment, be it $10 - $50. This small increase in repayment can wipe years from the term of your loan.
3. Enquire On Refinancing – Property lending has become super competitive. Check out other lenders “deals” and assess whether they are the smart option. Be aware of exit fees and entrance fees and include thos in calculations.
“Becoming a better money manager can save you thousands of dollars in interest,” commented Brett White of RE/MAX Extreme.
“The secret is to use our cash-flows wisely. Not only will you save thousands in interest but wipe years from your mortgage,” explained Brett.
For advice on your home loan call Extreme Mortgages on 9400 6310.
For further information contact:
Brett White, Managing Director of RE/MAX Extreme 0400 952 788