Reducing the life of your loan isn’t difficult; there are many simple things you can do to cut years off your mortgage. Here are two simple tips that will help you be mortgage-free sooner than planned.
1. Small extra repayments
One of the most obvious ways to pay off your home loan quicker is to make extra repayments. “Planning for regular, small cash injections can have a great impact over the life of a loan,” says Teo Torrelli, Director of MKS Lending Group.
“Let’s say we give an extra $50 a fortnight on a $500,000 loan, that saves you $32,000 of interest over the life of the loan which in turn will save you just over two years,” says Teo who has been arranging loans as a Mortgage Broker since 1985. “That’s only $25 a week.”
2. Switch your payment intervals
If you find that you don’t have the discipline to make extra repayments, then simply switching your payment structure from monthly repayments to fortnightly can also help save years off your mortgage.
“Because there are 12 months in a year but 13 four-week cycles, by switching your payment intervals from monthly to fortnightly, you are essentially paying off an extra month per year,” says Teo.
Contact Teo Torrelli at MKS Lending Group who can help you be mortgage-free sooner than planned.
T: 0419 512 833