At Purely Finance, we specialise in home loans for your home or your investment property. In addition, we have provided financial planning and advice to thousands of people in the Perth area. We love the concept of paying off your home loan as fast as possible.
The less money you owe on your primary home loan, the more equity you can use for investing. If you don’t want to invest your equity, paying off your home loan still frees up the money you would be paying when making your monthly repayments.
Here are some tips for paying off that home loan ASAP.
Match Your Payments with Your Payday
Some banks will do this; some won’t. But you can knock off some interest by paying earlier if your money is just sitting in your checking account waiting for your payment to be due.
Pay Every Fortnight
This has two benefits. You make 26 payments a year, which is like 13 months. You are also paying interest off faster. You will have to call us for details, but you can save a lot of money on interest this way.
Mortgage Offset Account
This kind of account can reduce the amount of money on which you are paying interest. It is the best of both worlds; you have access to your money, but that which you don’t spend helps reduce your interest payment.
Lump Sum Repayments
If you come into some extra money, you may want to just use it to pay off some of your home loan. This form of delayed gratification can be painful, but worth it in the long run.
Never Reduce Your Payments
If your interest rate goes down, keep making the payment you would have made on the higher interest. It is paying off your principal faster. You can also increase the amount of your current payments.
Call Purely Finance Today
Call Purely Finance for the advice and help you to succeed financially: (08) 9453 8888.