How extra home loan repayments can save you time and money
By making additional mortgage repayments, you could save yourself interest and reduce the length of your home loan. The more money that you owe, the more interest you’re paying, so if your loan allows you to make extra repayments and you can afford to pay a little more, this could be a smart option for you.
By entering your current mortgage status including loan amount, interest rate and frequency of repayments, you can calculate the impact that extra monthly repayments will have on the length of your loan and the total amount repaid on your mortgage. The earlier in your mortgage’s life that you begin making extra repayments, the more money and time off your loan you may save. Even small amounts of $50 extra a month can make a significant difference to the total amount paid at the end of your loan.
It’s always valuable to talk to your mortgage broker when looking to make additional repayments, as some fixed rate home loans will not allow you to do this without incurring an additional fee. Your broker will check if you are able to make extra repayments or if there is a limitation on how much you can repay throughout the loan. Contact Mortgage Choice today to explore your options and see if you could save.