Rae's tips for saving money on your home loan
"I'm actually really excited about the prospect of being able to
buy a new house and reorganise our mortgage. Last time we had a
fixed interest rate - but since then the recession hit and the
interest rates went low, so we never had an opportunity to
capitalise on that.
"Here are a couple of tips I've picked up which may help you handle your repayments."
- Pay half your monthly loan payment every fortnight (you'll make two extra payments a year)
- Increase payments whenever you can
- Keep your payments the same if interest rates drop - you'll pay off more principle which will save interest costs and shave time off your loan
- Pay off a lump sum when possible (i.e. from a commission, bonus, inheritance or regular savings)
- Reduce the term of your loan - this will reduce the overall interest costs of your home loan!
The TMS guide to managing your home loan
How to take advantage of interest rates
What's the best home loan for you?
How can I pay off my loan?
How a revolving credit loan could save you interest
What's equity, and what will it allow me to do?
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