You don't need to win the lottery to pay off your home loan. There are a number of great strategies for reducing your loan balance and saving thousands in interest repayments. It's never too late to begin, so pick and choose which of the following work for you.
1. Switch to weekly/fortnightly repayments
Pay fortnightly or weekly instead of monthly. Mortgage interest is usually calculated on a daily basis so the more frequently you pay, the more you will save, even if you are not paying any more than you did previously.
2. Make extra repayments
Extra funds have the immediate effect of reducing the loan balance. Every dollar you put on your repayments will reduce the principal and therefore the interest payable next repayment. This saving then compounds, making a significant impact over the life of your loan. Your loan's redraw facility offers an easy and efficient way to apply these additional payments.
Read the rest here
No comments:
Post a Comment