Money Management 101 for Those With a Mortgage

I‘m always on the lookout for articles with the potential to positively change a business. What’s your take on the following points I came across recently? 

Home owners and property investors have been enjoying the lowest interest rate environment for a long time. 

And while there’s speculation that official rates may drop even further, it’s uncertain how much of this the banks will pass these on to consumers. But what if I told you there was a way you could save money, irrespective of the interest rate you’re paying, simply by taking a longer-term perspective on your loan?

WHEN A FORTNIGHT MEANS MORE THAN A MONTH

Do you realise that there is a real financial benefit in increasing the frequency of your mortgage repayments from monthly to fortnightly. 

By paying half of your monthly obligation to the banks each fortnight, you are in effect making 13 monthly repayments instead of 12 over the course of a year.

BUT WAIT, THERE’S MORE…

Now consider the savings you could enjoy on your mortgage if you not only opted to make fortnightly repayments, but you also chose to maintain the same level of repayment even though interest rates had come down.

I’d be really interested to know your opinion. Check out the full article here and then I’d be happy to discuss with you by phone (07) 3491 8883 or email [email protected].

Thanks,

Tony