Tip Top Directory - The Top Sites on the Web » Article Details

Mortgage Choice Brisbane Home Loan Tips

Date Added: August 19, 2011 11:22:34 AM
Author: Chris Smith
Category: Business & Economy: Finance and Investment: Mortgages
Top 10 tips for paying off your home sooner, by the team at Mortgage Choice in Brisbane. 1. Pay more regularly: By paying a loan fortnightly or weekly rather than monthly, you can save thousands of dollars in interest costs. If you pay monthly, you make twelve payments per year. If you split your monthly repayment into two and pay fortnightly, you actually make the equivalent of thirteen monthly repayments per year. 2. Regular extra repayments: Just paying a little extra every month can have a big impact in the long run. Based on a loan of $300,000 at 6.8% over 25 years, if you pay an extra $50 each month, the loan will be repaid about 18 months earlier and you will reduce the interest owed by $22,000. 3. Extra bulk repayments: Making a lump sum payment (even a small one) into a loan can make a substantial difference. Say a borrower received a bonus of $1,000. If this were deposited during the first month into a loan of $300,000 at 6.8% over 25 years, it would reduce the overall term by 2 months and the total repayments by over $4,000. 4. Make it automatic: Use internet banking to make your repayments automatic and align them with your pay cycle. This will help with budgeting and will ensure none are missed. 5. Offset account: A mortgage offset account is attached to your home loan account, acting as a savings account and allowing you to make withdrawals. It offsets the interest owed on your home loan. For example if you have a $200,000 home loan and $15,000 in your offset account you will only be paying interest on $185,000. Used correctly, this feature in conjunction with your regular repayments will not only reduce the interest you pay but also the life of your loan. 6. All-In-One facilities: All-in-One facilities save interest on a loan by having all of the borrower\\\'s income credited direct to the loan account, thus immediately reducing the loan balance. The loan account effectively becomes the borrowers only banking facility, as access to the funds is by way of cheques and/or debit or credit cards. 7. Pay your fees and charges upfront: If your lender allows you to pay your fees and charges upfront at the outset, you will not be forced to pay interest on the amount, ultimately saving you money. 8. Transfer your loan: If you think you might want to move, make sure your lender will allow you to transfer your loan to another property and not overcharge you to do so. If your loan isn’t portable, you are likely to incur discharge costs and new establishment fees, not to mention possible lenders mortgage insurance. 9. Refinance: If you currently have home loan extra features you don’t use consider saving money by refinancing to a loan with a more basic product offering a lower interest rate and/or lower fees. 10. Professional packages: Consider professional package, which offer reduced interest rates and a range of features in return for an annual fee. They often have credit cards and other product discounts attached also (eg. insurance). Contact our team of mortgage brokers in Brisbane (Mortgage Choice) for further information.


You must be logged in to leave a rating.
Average rating: NAN (0 votes)