4 Ways to Pay Off Your Mortgage Faster Without Pushing Yourself to the Limit.
These 4 tips will help you pay off your mortgage early without straining yourself.
Paying off your mortgage faster will save you money and take away the financial load sitting on your shoulders. Here are some ways to get rid of your mortgage debt faster.
Switch to Fortnightly Repayments
Like most people, you are probably paying monthly.
Each year has 26 fortnights. If you cut your monthly payment in half and pay every two weeks, each year you’ll be making the equivalent to 13 months worth of payments.
This could save you thousands and reduce your mortgage fast.
Consider An Offset Account
An offset account is like a regular bank savings/transactional account. The difference is that it is linked to your mortgage. The balance held in the offset account reduces the amount you owe on your mortgage. This results in a reduction of the interest you pay and will help pay off your mortgage faster.
Reduce Your Interest Rate
To do this, the first step is to compare your current home loan to see if there are cheaper options in the market. This comparison must be a ‘like-for-like’ comparison. So you must compare a loan with the same features as your existing mortgage.
Then once you find a few competitors with better rates, contact your existing lender. See if you can negotiate with them. You’ll be surprised, they want to KEEP you as a customer.
If your lender won’t negotiate with you, then it is worth considering switching loans. Speak to a qualified mortgage broker and they will be able to provide you with an appropriate recommendation.
Reducing your interest rate comes with obvious benefits. Your repayments reduce and therefore you pay off your home loan sooner.
Increase Your Repayments
Now you have reduced your interest rate, it is a good idea to keep the same repayments that you were paying before the rate reduction. This way you will pay off the mortgage faster. This can save you thousands in interest and reduce your loan term.
This works also If you are on a variable interest and interest rates drop. If your rate drops, keep the same repayments you were making.
Applying these 4 simple tips, you will be on your way to repaying your home loan faster. This will save you money in the long run.
If you’re after more tips related to Property Investment, you should join us at our next Property Investor Night and meet with our wonderful Coaches. You’ll be able to ask them any question you want and it’s a free event!
Take the Next Step
You’ve probably heard it before, infrastructure is vital to your property investing success. Here’s why you should consider current and future infrastructure when making an investment decision. First off – what is infrastructure?Investing in houses offers the…
Choosing the perfect property manager will ensure that your investment is safe. You’ve put your hard earned money towards an investment property. To maximize your return and reduce your stress you need a good property manager. Here’s what you…
Property is an amazing asset that can grow your wealth over the long term. However, it’s vital that you invest in the right properties, because making a mistake can cost you big time. It’s like when you play Monopoly. Let’s be honest… No one ever really wins…
Do you know what the best investment portfolio looks like? Is it apartments, houses or a mix of both? It’s the battle of the ages: House vs Apartment. The thing is the answer to this question can be different for everyone and the determining factor is often about…
Did you know that The money in your bank account used for direct debits. All money in your offset or redraw accounts. Any funds due to you at settlement. Any payments made in advance. The bank can potentially keep it under the “All Monies Mortgage Clause”. Yes,…
The post 4 Ways to Pay Off Your Mortgage Faster Without Pushing Yourself to the Limit. appeared first on Positive Real Estate.
Read more: positiverealestate.com.au