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If you
have a mortgage you are not the owner of that property, but you are the
OWNER OF A MORTGAGE.
Your mortgage is going to COST YOU MONEY month after month and the
sooner you can settle your debt the better.
There are numerous ways to shorten your mortgage (bond) term without
refinancing (switching of bonds). We’ll be discussing some ideas
briefly.
Paying Off Your Mortgage Loan Early
While everyone wants to pay off their mortgage
rather sooner than later, it requires a lot of planning and discipline
to transform wishes into reality. Consider the cost savings in the
example below.
If you take out a 30 year loan for R500,000.00 with a 12.500% interest
rate, for example, your monthly payment (interest and principal only)
will be R5,336. By the time the 30 year time period is complete, you
will have paid R1,921,008.96 for your home.
By paying just R200.00 more each month, you will pay only R1,509,854
toward your home. This is a saving of R411,154. In addition, you will
get the loan paid off 7 Years 3 Months sooner than if you paid only
your regular monthly payment.
What can you do nowadays with R200? Not much, but it can contribute to
massive savings on your mortgage and help you getting out of debt much
faster.
Use A Mortgage Calculator
Mortgage calculators can help you to find out
what you can afford before going to a bank or mortgage broker. You do
not have to call your broker every time interest rates change since you
can figure out the costs and benefits yourself with a mortgage
calculator.
You can factor in your deposit, the cost of the home, and interest
rates and you can see your monthly payment. This will help you to
determine if you can afford a home or not yet. You can also see great
benefits by increasing your payments for example. Click on any of our
free mortgage calculators below and learn more.
Financial Calculators
Consolidate Your Debt Into Your Mortgage
Mortgage loans offer cheaper credit, and one way
to give yourself some breathing space is to consolidate your debt into
your bond. This is where interest rates are much lower than credit
card, personal loans and vehicle finance. Therefore debt consolidation
would help you to reduce your monthly repayments. Thus you would be
paying an interest rate that applies to home loans on all your high
interest debt.
For more information see the following
money saving articles below
- Recognizing
a Bad Mortgage Loan
- How to
Afford a Mortgage Bond
- Debt-Free
Living
- Are
Debts Keeping You Up At Night?
- Good
Debt vs Bad Debt
- Budgeting
– It Has to be Done Otherwise You’re Sunk!
To apply for a loan you will
have to fill out a short application form. You will then receive a FREE
quote from well established, nationally recognized lenders. You do not
need to decide now whether the loan is for you.
Just apply and compare the repayments to your current situation. There
is no obligation on your part. If you decide that it is not for you,
you simply do not have to accept the offer. You have nothing to lose
and everything to gain.
20 Second Applicationn
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