Change your repayment from monthly to fortngihtly. Rather than 12 monthly payments you will actually make 26 fortnightly payments in a year.
You will save on interest and you will end up paying off more capital in any given year.
For a $300,000 loan over 30 years this could save you almost $120,000 in interest payments over the term of the loan and you could reduce the term of your loan by around 7 years!
This example is based an initial loan of $300,000 over 30 years at a rate of 7.5%. The savings are not exact and are designed to be nothing more than thought provoking. The scenarios are generic and do not take individual circumstances into account. You should seek independent financial advice before making any significant changes to your financial products.
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