It is a common practice to take out a home loan to own your dream home. Then it starts to feel like it takes forever and more to pay the home loan. Do you want to pay off your home loan sooner than you have planned? While it may seem like a daunting task, it is possible to reduce the amount of time it takes to pay off your home loan. Let’s explore a few simple strategies to help you pay back your home loan faster.
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Select the right type of home loan.
If you wish to pay off your home loan faster, you should select a home loan type that will allow you to make additional payments. Certain types of loans such as fixed-rate home loans will restrict your ability to make extra repayments each year. You can also seek the assistance of an expert in the field like Sally Pietersz at Rands Financial Services to select the right type of home loan for you.
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. Make extra payments
Making extra payments on your mortgage can reduce your loan’s interest and help you pay off your loan sooner. You can make extra payments in the form of a lump sum or set up regular payments in addition to your regular mortgage payments.
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Make fortnightly payments
Fortnightly payments are similar to increasing the frequency of your payments as they split your payment into two half payments. However, with fortnightly payments, you pay every two weeks instead of monthly. This will reduce the amount of time it takes to pay off your home loan.
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Refinance
Refinancing your home loan can help you reduce your interest rate and lower your monthly payments. This can help you pay off your loan faster. However, it is important to take into consideration the fees associated with refinancing.
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Make use of lump sum payments
If you come into a lump sum of money, such as an inheritance, a bonus, or a tax refund, you can use that money to pay off a large chunk of your home loan. This will reduce your interest and help you pay off your loan faster.
These simple strategies can help you pay off your home loan sooner. But it is vital to do some research and speak to a financial expert to make sure that the strategy you choose is the right one for you as only the right approach can make savings for you. You can reach out to an expert Mortgage Broker such as Sally Pietersz at Rands Financial Services and decide what strategy suit best for you to pay out your home loan faster
Call us at 0434391331 or leave a message at https://www.randsfinancialservices.com.au/contact-us/ and we will be in touch.
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