RANDS & SENSE

R1 500 000 at a rate equal to prime (7%) over a 30-year period (see table). This means that, over the 30 years, Sam will have paid almost R2 100 000 to her bank for lending her the money to buy her home.

Now assume the interest rate increases to 9.75%. Not only has Sam's monthly repayment gone up by almost R3 000, she will have to pay an extra R1 046 520 to her bank over the 30-year term.

Paying an extra R100 a month

Sam is shocked to see the numbers and has decided to add an extra R100 a month towards her bond.

By paying an extra R100 a month