If you want to save years and tens of thousands of dollars off your home loan, what you want to understand is the power of compound interest.
If you been involved in investment, you would know that the power of compounding interest over time can work for you much more than anything else. It multiplies your benefit. The same is true in paying down debt – you can slash years off your home loan and save tens and thousands off your interest costs.
How much can I save off my home loan?
If you’re consistent – probably more than you think.
If you had a mortgage of around $700,000 and paid just $50 extra a fortnight on top of your minimum repayment, you could save over $40,000 in interest of your home loan and slash years off the term.
If you can double that you’ll get back much, much more.
Wouldn’t that be good?
*Savings based on a $700,000 home loan with a 30 year term an average interest rate of 3% over the life of the loan.