Are you a property owner? There is no questioning that one of the largest expenses many of us face on a monthly basis is the payment of our mortgage – whether it’s your principal place of residence or your investment portfolio. To take a moment to sit down and actually reflect on how much money we pay to the banks in interest can be overwhelming, but there are ways you can reduce your interest payments and put more money in your back pocket.
Have you taken the time to strategise how you can save money on your mortgage payments? There are a number of ways that you can achieve this, which can result in $1000s in savings each year:
1. Increase the number of mortgage payments made within the month. This is one of the easiest ways to reduce your interest payments and fast track owning your property sooner.
2. Pay a little extra than the minimum requirement. It doesn’t have to be a large additional sum. Maybe consider paying $700 instead of $675.
3. Pay your wage into your mortgage. Interest is calculated on a daily basis so any additional payments for any short-term period assists in reducing your interest.
4. Make lump sum payments to your mortgage. As irresistible as a brand new summer wardrobe may be, allocating tax returns, bonuses and extra commissions to your mortgage can also have a positive impact and put more money in your back pocket in the long term.