Do extra repayments really make a difference? by Chris Stampoultzis

January 30, 2015
Catherine Rutherford

 

You bet they do! In fact, it's amazing how even small additional payments can add up to big savings. Let's say you give up a take-out coffee each weekday, and use the savings to pay an extra $20 weekly into a loan of $350,000. You could save up to $30,700 in interest costs and be mortgage-free two years sooner (assumes rate of 6.0% pa and loan term of 25 years).

 

It works this way because every extra dollar comes straight off your loan principal, which in turn reduces the interest payable. It's a great way to get ahead with your loan. You can add up the savings you could make with the Extra Repayments Calculator on website https://www.mortgagechoice.com.au/chris.stampoultzis/calculators 

 

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