Banks are making record profits in 2012 and one of their main income streams is the interest they earn off your mortgage. Did you know for a mortgage of $30,000 at 6% and a 30-year term paying $1799 per month that you will pay back more than twice what you borrowed in interest alone?
Here are our top five tips to repay your loan faster:
- Increase your regular payments by $100 per month. By simply paying an extra $100 per month you will save $53,501 or looking at it a different way, you could repay the loan nearly four years faster!
- Halve your monthly payments and pay fortnightly. Instead of paying $1799 per month, paying $948 fortnightly is in effect paying slightly more and will save you a whooping $110,024 in interest or put another way, repays the bank over eight years sooner!
- Make lump sum payments. Any extra payments you can pay into your mortgage will make a big difference. That bonus from work or extra commission earned used to pay off the mortgage will save you money.
- Get the best deal you can. By saving 0.50% in interest charges over the life of your loan whilst continuing to make the same payments of $1799 per month you will save $34,303 over the life of the mortgage. Yes, that’s right! Save $34,303 for paying exactly the same amount by simply letting us negotiate the best deal this year and every year.
- Do any of the above combined and you will literally save tens of thousands over the life of your mortgage and take years off the repayment period.
If you want the best deal on your mortgage and would like help to repay the loan faster then give us a call.