Also it isnâ€™t too late to start making extra repayments if youâ€™ve had your loan for a few years. As an example, if I'd my loan for five years and just then started making an additional $200 every month in repayments just what would the real difference be?
By needs to make repayment that is extra after five years of $200 every month, I would nevertheless conserve 36 months, 4 months from my loan term and minimize my interest expenses by $32,459!
Can you really make use of my offset account to produce greater re payments?
A mortgage offset account can help you reduce interest expenses because every buck in your offset account is cutting your mortgage loan stability by the exact same quantity.
â€¦So extra repayments to your offset account may have the exact same impact being a repayment that is extra!
Because it can be easier to access the funds compared to redraw if you can be careful with your money it can be better to make the extra repayments into your offset account.