Small Extra Payments, Big Savings
In the world of home loans, a little bit extra can mean massive savings.
In the initial stages of securing a home loan for example, any additional funds you can put toward your deposit has the ability to put the terms of your agreement more in your favour.
Higher deposits mean that you can negotiate for a better interest rate and you are that much closer to becoming debt-free.
Once you have started paying off your mortgage, you also have the ability to save big. By making extra repayments, you are reducing the amount of the principle owed and therefore bringing down interest.
While it may not always be financially feasible to carry out these excess payments, it is worth dedicating any little extras that you may have - such as tax returns or bonuses - to the effort.
This will help you to reach a state of debt-free ownership sooner than if you continued making just regular payments - and it could save you thousands.
To find out just how much, use an online mortgage repayment calculator to do the sums - you may be surprised at the result.
To get more detailed information on your situation, talk to a Loan Market mortgage broker today.