Mortgage SA Home Loans Tips:
In this 4 part series we take a look at the best tips to managing your mortgage and saving thousands on interest and other payments.
The first step to cutting your mortgage repayment by thousands is not to begin paying extra into your bond every month, in fact for most homeowners the first step to saving is actually to apply for a further bond or mortgage re-advance [click here to apply].
Tip #1: Eliminate all Short-Term debts
Your home loan is your cheapest form of debt and there is no point in reducing that, without first paying off other debt with higher interest rates.
In most cases, interest on your credit, store cards and personal loans are charged at the maximum rates while your home loan is charged between 1% and 2% below prime.
Begin by finding out what your most expensive debts are. Pay these off and then be disciplined about using short-term debt tools – which means you should try to avoid them.
Once you’ve reduced and paid off your short term debt you’ll be able to pay a little extra into your mortgage every month to help reduce the interest charges on your home loan.
Since your mortgage is your cheapest form of debt it makes sense to use the available funds currently in your bond to pay off your existing HIGH INTEREST short term debts.
Tip #2: Increase your monthly bond installments slightly
Tip #3: Pay lump sums and bonuses into your bond
Tip #4: Don’t lower your home loan repayments when rates drop
Speak to one of our Mortgage Consultants now about applying for a Mortgage Re-advance:
Click here to complete the short online form,
Or email: olen@propertyloans.co.za,
Or call: 0861-111-563.