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Tricks to Paying Off Your Mortgage Faster

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Take a closer look at your loan. Check your progress. 

How are you paying it off?

If you think the progress is too slow, here are a few tips to help you pay off  your mortgage sooner. implement these steps, and you can be financially free, sooner. 

Make Smaller Payments, More Often

This technique can help you pay lesser interest overall. So, for example, if you pay a monthly mortgage, you might want to consider making weekly repayments. these will reduce your interest payment.

Prepare to Pay Extra Repayment

You might want to start paying a bit more than your minimum repayment. Perhaps, you can add an extra $50 or even $100 for every repayment. You will be surprised that it can significantly reduce your mortgage and interest that you pay. the extra payment you making it can be used for emergency funds that you will need in the future

Be Consistent Even When Interest Rates Fall 

Some homebuyers decrease their repayments when there’s a decline in interest rate. We don’t encourage this practice. It’s recommended that you pay the repayments at the same level (or even higher) to pay more of the principal, thereby making quick progress on your loan. 

Choose to Offset 

A mortgage offset account is also an excellent option to pay off your mortgage faster. This account is linked to your loan and the interest payable on the loan from month to month is calculated by deducting the amount from your offset account from your current home loan

Look for a Better Deal 

As always, you need to find a mortgage that suits your preference, lifestyle, and capabilities. We suggest working with a local finance broker  like a Sydney Mortgage Broker so you can find the right products for you. Additionally, finance brokers can arrange for a product comparison between lender and find you a suitable loan and interest rates and can even find lenders that do not charge fees for extra repayments and refinancing.

 

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