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Savvy Tips To Pay Down Your Mortgage Faster
Because your mortgage is likely to be the largest debt you will ever have, it's logical that you want to pay it off as soon as possible. We've compiled a list of helpful advice and tips to assist you in paying off your mortgage as quickly as possible!
Property for sale as an investment.
Buying an investment property may seem counterintuitive because it would raise your debts, but there is a distinction between good and bad debt. Debts that are beneficial to you, such as a positively geared investment property, can actually help you pay off your mortgage faster!
What is the mechanism behind this?
A bad debt, on the other hand, is described as debt on an asset that depreciates in value over time, such as a car loan.
Accounts that are offset
Mortgages that are 100 percent offset loans allow you to use your mortgage as your primary source of funds. If you have an offset account against your mortgage, whatever money you have in that account will be applied to your principal, resulting in you paying less interest on your loan. This offset account serves as your day-to-day cash account, as you can still withdraw funds to cover day-to-day costs, but whatever balance you have in it is working for you to reduce your interest payments.
Increase the frequency of your repayments.
This is one of the most basic methods that many people are unaware of, yet it can significantly reduce the term and cost of your house loan. If you presently make monthly payments on your house loan, switching to fortnightly payments can actually lower your interest payments, allowing you to pay down your principal faster.
Read Full Article- https://buyershub.com.au/savvy-tips-...rtgage-faster/
Property for sale as an investment.
Buying an investment property may seem counterintuitive because it would raise your debts, but there is a distinction between good and bad debt. Debts that are beneficial to you, such as a positively geared investment property, can actually help you pay off your mortgage faster!
What is the mechanism behind this?
Good debt is one that is secured by an item that increases in value and allows you to earn money (such as rental income from an investment property).
A bad debt, on the other hand, is described as debt on an asset that depreciates in value over time, such as a car loan.
Accounts that are offset
Stop reading right now and call your lender if you don't already have one.
Mortgages that are 100 percent offset loans allow you to use your mortgage as your primary source of funds. If you have an offset account against your mortgage, whatever money you have in that account will be applied to your principal, resulting in you paying less interest on your loan. This offset account serves as your day-to-day cash account, as you can still withdraw funds to cover day-to-day costs, but whatever balance you have in it is working for you to reduce your interest payments.
Increase the frequency of your repayments.
This is one of the most basic methods that many people are unaware of, yet it can significantly reduce the term and cost of your house loan. If you presently make monthly payments on your house loan, switching to fortnightly payments can actually lower your interest payments, allowing you to pay down your principal faster.
Read Full Article- https://buyershub.com.au/savvy-tips-...rtgage-faster/
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