6 Hot Tips to Help Reduce Your Mortgage

Mortgages – Most people will have a mortgage sometime in their life whether its for their own home or for an investment property.
Here are a few tips that might help you pay that debt off quicker if its your residential home.
1. Have an offset account – What ever funds you have in this account it offsets it on your mortgage (for example you have 10k in your offset account and your mortgage is 100k you only pay interest on 90k. Over 30 years you are saving about $37558.15 or 5 years in repayments) and you dont pay tax as you are not “earning” interest. Most banking websites have an offset calculator so you can work out just how much you can save.
2. Paying your loan off weekly or fortnightly will reduce your interest quicker than monthly as interest is calculated daily.
3. Make extra repayments where ever possible – it all adds up.
4. Always check with your bank that you are getting the best interest rate (there is sometimes room to negotiate – esp. if you have seen a better rate else where).
5. Look into mortgage packages – A package may seem expensive as there is a yearly fee but they are generally worth it when you actually sit down and add up individual costs of credit card annual fees, off set account fees, loan approval fees and monthly loan fees and most of the time you also get discounts on insurances as well.
6. Know that most banks can do split loans – Part fixed and part variable.