Four Ways to Reduce Your Mortgage Interest

I’m always on the hunt for relevant info and I loved this - one of the best articles I’ve seen on this topic for a while. Here are a few paragraphs as a taster...

With rising living costs and an uncertain economy, we’re all looking for ways to trim the budget – and what better way to save than on your mortgage?

One of the biggest expenses in any household is the mortgage repayment, with an average $350,000 mortgage snatching a little over $2,580 from your bank account each month. Over the course of a 25-year home loan, this generates interest payable to the bank in the amount of a staggering $425,000.

To help you manage your mortgage more effectively and reduce the amount of interest you pay your lender each month, Mortgage Choice offers the following helpful hints to get you ahead:

Tip #1: Cut your payments in half

This tried and true strategy has been saving mortgage-holders bucketloads of cash for years. You simply take your monthly mortgage repayment – say $2,000 – and cut it in half ($1,000), and then pay this amount fortnightly instead of monthly. “With monthly repayments of $2,000, you will pay $24,000 off your loan by year’s end,” Sheppard says. “However if you pay fortnightly, by splitting the monthly repayment in half and making repayments of $1,000 every two weeks, you will pay $26,000, as there are 26 fortnights in a year.”

Pretty valuable stuff, I’m sure you’ll agree! Why not check out the whole article here https://www.yourmortgage.com.au/article/four-ways-to-reduce-your-mortgage-interest-118013.aspx and share your thoughts with me afterwards: call (0403) 296-221 or email me at [email protected].

Thanks,

Tammie