Making Lump Sum Repayments on Home Loans Speeds Up Payback
Buying real estate has the potential to be one of the biggest financial commitments of your life. Depending on the type of home loan and interest rate you get, these repayments can last upwards of 20 years.
However, there are ways of paying off your home loan faster and one of those is to establish a savings and repayment strategy.
For example, if your home loan has a fixed interest rate and your agreement allows for it, then it’s possible to repay up to $10,000 per year without paying any administrative fees.
By implementing a regular saving plan, you’ll be able to make additional lump sum payments in addition to the minimum monthly repayment you already contribute.
While this may mean cutting back on superfluous spending and giving up some creature comforts for a while, once you’ve adapted the repayments it will become second nature and you will see your loan start to decrease faster than ever before!
A lump sum repayment calculator can be used to find out just how effective making extra payments on your home loan can be.
To get more detailed information about your situation, talk to a Loan Market mortgage broker today.