Save $60k and years on your home loan

The Cairns Post - - MONEYSAVERHQ - TIM McIN­TYRE

HIS­TOR­I­CALLY low in­ter­est rates have saved mort­gage hold­ers thou­sands, but some sim­ple tweaks can boost those sav­ings fur­ther.

Chang­ing re­pay­ments from monthly to fortnightly is one ex­am­ple, ex­plains Mort­gage Choice CEO John Flavell.

“Say you have a 30-year loan of $500,000 with an in­ter­est rate of 4 per cent. Your min­i­mum monthly re­pay­ment would be ap­prox­i­mately $2387,” Mr Flavell said. “If you pay fortnightly and di­vide your monthly re­pay­ment in half$1194 per fort­night- you could save $56,643 (in to­tal).”

Mak­ing even min­i­mal ex­tra re­pay­ments boosts long term

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