24 Ways To Get The Mortgage Monkey Off Your Back Faster

I think the following raises some excellent points about mortgage payment. I’ve included a few of the highlights for you to get the gist of the article:

Your home loan is probably the biggest investment you will make in your life, and a debt that most people would like to pay off as quickly as possible. Here are our hints and tips as to how to pay off your mortgage faster.

1. Skip the honeymoon

Beware of lenders bearing gifts. Introductory or honeymoon rates have long been an important marketing tool for lenders. You are initially offered a cheap rate on your loan to get you in the door but once the honeymoon period is over, the lender will switch you to a higher variable rate of interest.

There are two problems with this scenario. First, the variable rate is often higher than some of the lower basic loans available so you could end up paying more. Second, you need to clearly understand that a honeymoon rate applies only for the first year or two of the loan and is a minor consideration compared to the actual variable rate that will determine your repayments over the next 20 or so years.

You may also be hit with fairly steep exit penalties if you want to refinance in the first two or three years to a cheaper loan. So make sure you fully understand what you are letting yourself in before setting off on a "honeymoon" with your lender.

2. Make repayments at a higher rate

A good way to get ahead of your mortgage commitments is to pay it off as if you have a higher rate of interest. Get a loan at the lowest interest rate you can and add 2 or 3 points to your repayment amount. So if you have a loan at about 4 percent and pay it off at 5 per cent, you won't even notice if rates go up. Best of all, you'll be paying off your loan quicker and saving yourself a packet.

What do you think? Maybe you’d like to read on? Check out the full version here…then give me a call to discuss how this might impact your own business: (0403) 296-221. Alternatively, email me at [email protected]  

Thanks,

Tammie