Be Mortgage Free

Posted by rickpetko9179 on September 12th, 2014

At Confidence Finance, we’re often asked about effective strategies to pay down home loans as soon as possible. Of course, the simplest method is to make extra repayments and pay down your principal.

But did you know there are a number of other tips you could use to save you thousands?

Here’s how:

1. Hit the principal early

Compound interest works against you in the early years of your mortgage. It can feel as though you are only paying interest and the principal isn't reducing at all.

Every dollar you reduce your principal by in the early years will reduce your ongoing interest cost on your mortgage.

Our Sydney Home Loan specialists can help you today.

2. Consolidate your debts

Do you have personal debt? A car loan? It’s likely that you’ll be paying a higher rate on interest on this debt.

If you have equity in your home, you could consolidate this debt into your home loan and reduce the rate of interest. While this will increase your mortgage debt, you will be paying less interest overall. That means more money in your pocket and a greater ability to reduce your debts.

If this sounds like you, call a Canberra Mortgage Broker today and see if we can help you.

3. Take advantage of lower fixed rates

With fixed rates lower than variable rates at the moment, you could save on interest by simply fixing your loan.

Confidence Finance has access to over 25 lenders with fixed rates starting from 3.99%!

4. Find out if your profession will get you a discount

Some lenders offer discounts to specific professional groups or members of professional organisations.

Call a Canberra Mortgage Broker today. You might be pleasantly surprised.

5. Moving to fortnightly repayments

Interest is calculated on your daily mortgage balance. If you make payments more frequently, the compounding interest effect is slightly smaller. This can save you money.

Call one of the fastest growing Mortgage Brokers in Sydney for your free personalized lending assessment. A knowledgeable mortgage broker can provide you expert advice that can save you thousands. We also do not charge you for our services.