Are you someone who’s looking for ways of money management so that you can repay your mortgage loan sooner than the normally scheduled time? A mortgage loan is the biggest loan that one can take after an auto loan and hence most borrowers try their best to pay off the loan early so that they can own their home sooner. If you’re in the market seeking a home loan, you can check competitive fixed-rate home loans like Newcastle Permanent’s as they have all kinds of options left for you and for your mortgage loan.
What are the ways in which you can manage your money in order to be able to repay the home loan sooner? For all those who are keen to make way with their mortgage with the goal of shaving a year or two, there are a few tips to follow. Check them out if you still don’t know about them.
- Sync your mortgage payments with your income: In case you’re someone who gets paid fortnightly, you should also schedule your mortgage payments in a fortnight. When you do this, you can cut down the payable interest rate and this will help you save a lot of dollars over the entire course of the home loan.
- Deposit lump sums in the mortgage account: If you wish to repay your mortgage sooner, make sure to dump in any amount of money like $2000, any work bonus, or dividends from other investments into your mortgage account. This can cut down an interest that is worth years of the term of the loan.
- Increase payments while rates are stable: You should increase the monthly installments you pay while the interest rates are stable. You will find most lenders give rate cuts to their borrowers and they usually pass on the full cut. Keep your mortgage payments at the same level which is equal to what you were paying before the decrease. Did you know that it is possible to cut off at least $20 to $50 over the entire lifespan of the loan?
- Make biweekly payments: Another way in which you can repay your mortgage loan sooner than the actual time is by making bi-weekly payments. However, for this, you have to ensure saving enough money. Unless you have enough funds at your disposal, it will be impossible to make biweekly payments for repaying your mortgage on time.
- Make repayments more often: If your repayment amount is calculated in a month you can make additional savings by paying your monthly amortization in halves. You can use the mortgage loan repayment calculator through which you can easily calculate the amount of money that you’re saving and the number of months.
- Look for a cheaper rate: You can even look for a cheaper rate by refinancing your mortgage loan. However, if you have only a small amount left to be repaid, then a refinance will not be a good option for you
