Pay More And Pay Often

April 9, 2014/Tip of the week

Assuming you have a mortgage that lets you pay extra, you should pay more and pay often. The interest charged on a $300,000 home loan at a rate of 7.15% over 30 years with monthly repayments is over $420,000. By paying off an additional $50 a month, you’ll reduce the interest bill by $39,000 and your loan term by 2 years and 4 months. You could look at making repayments weekly or fortnightly rather than monthly. Over 30 years the savings add up. To learn more, talk to the team at Aqua Financial Services.