Paying Your Home Loan Fast!
So you’ve got yourself a Home Loan and generally it will come with a 30 year loan term. Based on a $400,000.00 home loan at 3% you’d be expected to pay interest of over $206,000.00!
Thats a lot of interest don’t you agree? Well it doesn’t have to be this way. And we will show you why?
Generally what happens is most people will just repay the minimum repayment and follow their loan for the next 30 years, never really getting on top of the situation.
We however, like to educate our clients on how to use their money better to ensure you end up paying a lot less interest and therefor paying off your Home Loan early. Both outcomes go hand in hand.
Paying Your Home Loan Fast!
Let's do an example;
Say your net household income is $10,000.00 per month (After tax) and you have a $400,000.00 home loan.
Your stated repayments are $1,686.00 per month (3% home loan) and your monthly bills outside of your home loan (Food, Utilities, Insurances, Entertainment etc) is $6000.00 per month. It is likely you are wasting around $2,300.00 per month. If we re-work the way you budget and use your home loan, we can put the additional funds into an “offset” account which will help you repay your loan in 9years and 7months, saving you around $147,000.00 in interest!
Now we expect this money will be much better off in your pocket than the banks!
Even making an additional repayment of $50 per week would save 5 years 2 months off your home loan and $40,000.00 in interest…..
The lesson – every dollar paid towards your home loan will save you interest.
Let us show you how this works for your unique circumstance.