How To Pay Your Mortgage Fast!

untitled-design

By paying your mortgage weekly you will pay off the mortgage quicker. Right?

Wrong! Try this it will only take a minute.

Step 1:

Follow my link to my website and use the calculator Extra Repayment Calculator.

Step 2:

Delete the extra payment of $100 to zero. Delete 5 years to zero.

Step 3:

Change the Repayment frequency from monthly to fortnightly and then to weekly. Did you see the “Interest Saved” didn’t change – no savings!

Step 4:

Put $44 extra and change the repayment frequency from weekly to fortnightly to monthly and see how much you save over the life of the loan.

The rule is: You have to make extra payments or put additional funds into your home loan or offset account to save money.

 

A good rule of thumb to save money and not feel the strain…

 

Step 1:

Find out what your monthly repayment is.

Step 2:

Halve it and make this your fortnightly repayment.
i.e. Go to the calculator: $2,271 monthly repayments halve it = $1,136

Fortnightly repayments with no extra payments = $1,048

Difference = $88

Step 3:

Enter $88 in extra amount.

Your saving should equal over 5 years in repayments and a saving of $82,715.

Contact me, via the form on the left, for more ideas on saving money on your mortgage, or shoot me an email at dave.rase@multi-choice.com.au