Cut Your Home Loan Term in Half with 6 Simple Steps

Mortgage Brokers in Rockingham Helping your Home LoanRockingham mortgage brokers suggest ways to free yourself earlier of your loan.

We’ve all heard of the proverbial “monkey on your back,” and that’s how having a long term home loan can sometimes feel to homeowners.

Good news: there are ways to remove the burden of a mortgage by following 6 easy techniques to pay off the loan earlier than projected—and to reap the financial benefits.

To accelerate the payoff date, mortgage brokers suggest taking these steps:

Put any lump sum windfall toward your mortgage account

Instead of spending extra acquired cash, such as bonuses from work, tax refunds, or even a small inheritance on things such as a vehicle or electronics, why not put that extra cash toward your mortgage? Larger lump sum payments are helpful in shaving years off this debt.

Pay a little extra each month

If you are able to sacrifice a bit more money put toward your principal, this incrementally will help decrease the amount of time paying off your mortgage. Assuming you aren’t beset with too many other high-cost debts such as car loans or credit cards, an additional $50 or $100 each month can make a real difference down the road.

Match your repayment schedule with your income schedule

In order to cut down on payable interest, a good tactic is to make payments when you get paid, saving money over the duration of your home loan.

Consider refinancing

In the time since you acquired your home loan, your mortgage might need a check up. Your mortgage broker will be able to calculate a new loan based on current interest rates, which could result in a lower repayment, freeing up funds for you to apply elsewhere.

Keep an eye on interest rates

When the RBA offered a 0.25% rate cut, many homeowners took advantage. Maintain your payments to reflect the same level as what you paid before the cut.

Consider selling

While the interest rates remain stable, selling your home and purchasing a more affordable one is another tactic to free up some of the home repayment debt.

Utilising any or most of these 6 strategies will enable you to shorten a 30-year home loan to one that is more manageable in the long run.

If you’re looking for a reliable home loan in Rockingham, Kwinana or Baldivis, call Smartline Mortgage Brokers Rockingham at (08) 9527 1800.