3 Top Methods To Economize On Your Mortgage

by Virginia Graham on January 4, 2012

With the World economy in disarray, many individuals are asking themselves how am I able to save money on my mortgage? The price of living has gone up in most developed countries and it actually has in Australia. At the same time most workers in the economy have not had a rise in wages though folk in the mining economy have and so Australia now has a” two speed economy”.

One of the best ways to save money on your mortgage is to always pay more than the minimum payment on the tax-deductible debt. That way there is more equity left for you to take on debt against for investing reasons. The more debt that is deductible, the more cash you will have left to invest.

A second way to economize on your mortgage is to pay your mortgage bimonthly rather than monthly, as there are 26 fortnights in a year and slightly less (24) fortnights in 12 calendar months. So truly it is the same as paying rather more annually.

The third way of saving cash on your home loan is to pay lump sums off in chunks when you get additional money, this way your loan will be payed down much faster as you are not amassing as much interest in the long run.

I believe really with your home loan there's no magic silver bullet but if you pay it down slowly chipping away at the debt bit by bit,eventually the loan should get repaid. Also one thing frequently forgotten is the most cash you’ll make will be from the rise in capital property price and possible rent from your investment property, instead of by paying the debt down and this is where most investors focus is, although it can pay to also keep an eye on costs. Many of our customers trust us to keep the expenses down while they look after the capital investments. For more videos on investing in property in Australia visit my media page.

Virginia Graham is a mortgage broker and Central Coast Mortgage Broker andfinance expert, who has been featured in the Australian media.

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