Pay More And Pay Often

May 22, 2013/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.

For all your lending needs please don’t hesitate to contact me.
Regards,
Daniel Hustwaite
0408 985 611