11 Dec 2009
As we all know interest rates have been rising recently and are only set to get higher. But never fear, there is no need to panic because you can try and reduce your mortgage and hence your repayments by just following a few simple tips.
First off you’ll need to shop around and do your research so you can find the best possible home loan rate that will work for you and your situation.
Many people don’t realize that you can get big discounts on your home loan simply by negotiating with your home loan provider or talking to a mortgage broker who knows his stuff. Also it is worth adding that the features of a home loan can help you save heaps of money too. If you have the flexibility to pay off your mortgage weekly or fortnightly then you could be saving yourself big lumps of money in the long run.
Another little tip to have you paying less on your mortgage is to pay more than you need to each month. Banks want you to be paying off your loan for 20+ years so they will offer you a minimum amount that you need to pay. If you can pay more than this then you can get your mortgage paid off quicker and also save money by slashing the amount of interest you will be paying each month.
The last tip I have is that you should budget, budget, budget. Every little bit of money counts when it comes to paying off a mortgage. So maybe consider cutting back on those $3 lattes you get everyday or bring lunch to work instead of buying it, even saving $20 a week can help you to cut down your mortgage.
If you really are facing stress over paying off your mortgage then it’s probably best if you talk to an accountant who can tell you exactly where you can save money. If you’d like any more information then I’d be happy to be of assistance just let me know by leaving a comment and I will endeavor to help you out as much as I can.