How can you pay off your home mortgage or home loan faster?
There are many things you can do. Here are some tips from everyday Australians who are repaying their mortgage like you.
1. Make fortnightly repayment instead of monthly. You have to take advantage of the fact there’s 12 months in the year, but 26 fortnights, meaning you make one fortnight’s repayment more per year than you would if you were paying monthly. How much you can save? It depends on many factors. You can download the free Mortgage Home Loan Amortization Calculator from Investment Property Calculator to see how much fortnightly repayment can save you.
2. Shop around for better interest rates. 0.2% saving in interest rate will save you $14,500 over 30 years for a loan amount of $300,000. You can download the free Home Loan Repayment Calculator from Investment Property Calculator to see the impact of a lower interest rate. However, refinance your mortgage is not going to help if you do it wrongly. You can You can download the free Home Loan Refinance Calculator from Investment Property Calculator to see the impact of a lower interest rate.
3. Use a 100% offset account. When you have savings, put them into your offset account so that you can pay less interest. It is much better than putting them into a savings account because you have to pay tax. You can download the free Mortgage Offset Calculator from Investment Property Calculator to see the impact of using a 100% offset account.
4. Use a credit card as much as possible so money stays in the offest account longer.
5. Budgeting, prioritizing and buying within your means.