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Savingsmart
- saving money tip - mortgages
Tips that can save you a serious amount of money
1. Pay more frequently
This is one of the most effective strategies you can implement.
By changing from monthly to fortnightly (or weekly) repayments
you will pay off your loan sooner AND cut your interest bill
significantly.
For example:
If you had a $260,000 loan at 7.07%p.a. over 30 years your
monthly repayment would be $1742 per month. Now if that loan
ran its full term and we assume there was no interest rate
changes the total interest paid on that loan would be $367,129.
Now if you decide to cut your monthly in half (now $871)
and pay it fortnightly you potentially cut 75 months, that's
more than 6 years of the life of your loan. The total interest
paid back to the lender is $276447 - that's a saving of over
$90,000 in interest. That's saving a lot of money.
2. Pay Extra
Even more powerful - pay a little more from the start i.e.
like $10 a week extra. Once again this could cut years off
your loan, saving you thousands in interest. Alternatively
putting your annual tax refund cheque is another way to save
money.
For more strategies on ways to save money, savings tips
and money saving free advice contact - Rebekah Gould
Mortgage Consultant Mortgage Force (QLD) Pty Ltd
Phone: 07 55 735 474
Mobile: 0432 774 604
Email: rebekahg@mortgageforce.com.au
Web:
www.mortgageforce.com.au/rebekah
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