Most lenders will give you the option of making fortnightly
repayments, but why is this so effective in reducing your mortgage? The
concept is really very simple: there are 52 weeks in a year and
therefore there are 26 fortnights.
By paying fortnightly you are effectively making a total of 13
monthly payments (26 divided by 2) rather than 12 calendar months –
giving you one month’s extra repayment every year
It’s a simple concept but a potent one when it comes to driving down the amount you owe on your loan.
By paying your mortgage in fortnightly installments you could essentially wipe more than 4 years off the life of a 25 year loan term and save tens of thousands of dollars into the bargain.
And the best part is that once you factor the extra repayment into your budget you’ll hardly feel the pinch. Unlike other mortgage reduction methods that carry the burden of having to actively manage your mortgage on a monthly – even daily – basis, the fortnightly payment plan can be set up as a direct debit so you can simply ‘set and forget’.
It’s also less risky than other mortgage reduction methods.
Line of credit mortgages, for example, work only for the diligent, and not everyone likes living off their credit card. As soon as you start using your personal savings to buy essentials, the line of credit mortgage loses its effect as a loan reduction tool.
Just be sure to check with your lender that your loan facility allows you to make fortnightly repayments without any extra fees.
And if you’d like to put an even bigger dent in your loan, set up your fortnightly repayments over and above the minimum repayment, while keeping it manageable.
Not only will you better absorb the impact of interest rate movements, the extra dollars you invest will help knock down the remaining principal balance. This will ultimately reduce the interest you will have to pay and the term of your loan.
Elite Wealth Creators have been involved in the property and finance industry for over 20 years. Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance
http://www.
sales@elitewealthcreators.com
1800 GO ELITE
It’s a simple concept but a potent one when it comes to driving down the amount you owe on your loan.
By paying your mortgage in fortnightly installments you could essentially wipe more than 4 years off the life of a 25 year loan term and save tens of thousands of dollars into the bargain.
And the best part is that once you factor the extra repayment into your budget you’ll hardly feel the pinch. Unlike other mortgage reduction methods that carry the burden of having to actively manage your mortgage on a monthly – even daily – basis, the fortnightly payment plan can be set up as a direct debit so you can simply ‘set and forget’.
It’s also less risky than other mortgage reduction methods.
Line of credit mortgages, for example, work only for the diligent, and not everyone likes living off their credit card. As soon as you start using your personal savings to buy essentials, the line of credit mortgage loses its effect as a loan reduction tool.
Just be sure to check with your lender that your loan facility allows you to make fortnightly repayments without any extra fees.
And if you’d like to put an even bigger dent in your loan, set up your fortnightly repayments over and above the minimum repayment, while keeping it manageable.
Not only will you better absorb the impact of interest rate movements, the extra dollars you invest will help knock down the remaining principal balance. This will ultimately reduce the interest you will have to pay and the term of your loan.
Elite Wealth Creators have been involved in the property and finance industry for over 20 years. Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance
http://www.
sales@elitewealthcreators.com
1800 GO ELITE
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