If you want to pay down mortgage loans in less time, than you need to understand the process and what you are required to do to make an actual impact. I think that a lot of people really want to be in control of their financial future (I actually talk about this extensively in my book ‘The Money Cookbook’), but most simply do not know where to start or how to begin.

If you want to pay down mortgage loans sooner than required, than you should know that you are on the right track by visiting this website. You are also on the right track by being proactive in your journey to pay down your loans. Doing this will save you thousands of dollars in interest payments, will allow you to live without a house payment much sooner than you would be able to otherwise, and will also allow you to truly free yourself from the psychological and emotional bindings of debt in your life. The only tough question then becomes, ‘How do I really do it’?

That is a very good question, and in this article I am going to show you 4 tried and tested techniques for getting your mortgage paid off ahead of schedule, thereby effectively saving you money and freeing you from the burden of making expensive interest payments for any longer than necessary.

Resist The Urge To Adjust Your Repayments If Your Interest Rates Go Down

While adjusting your repayments to reflect a drop in interest rates may put more cash in your pocket on a monthly basis, it will cost you thousands more in the long run. If your interest rates drop and cause a reduction in your minimum repayment premium, than continuing to pay the same amount each month will actually go a long way towards lowering your principle at an increased rate, thereby shaving time off of your loan duration and saving you money in interest payments.

Skip The Honeymoon Rate

The honeymoon rate is a period offered by some lenders that gives you a break on interest during a short duration of time right after your loan has been finalized. During this phase, you can pay much less per month on your repayments without penalty. Of course, a lot of people begin to get accustomed to the honeymoon rate, and end up getting into trouble once the real, long term rate kicks in. They also miss out on the opportunity to pay down the principle during this period of decreased interest. I would recommend that, if you are going to be getting a honeymoon rate, that you bite the bullet and pay the full long-term monthly payment instead of taking the decrease. This will do two things.

  1. It will ensure that you are ready for the full-term rate to kick in
  2. It will significantly lower your principle, saving you thousands of dollars over the life of the loan in future interest payments

Save Small Amounts Of Money On A Daily Basis, And Use This To Make Extra Repayments

Did you know that making an extra $25 per week in extra repayments can save you as much as $97,000 in interest over the entire life of a 25 year loan? This extra effort can also shorten the life of a 25 year loan by up to six and a half years!

Consider What Features You Are Really Getting With Your Loan

Listening to your loan provider is one thing… but getting to the bottom of what the terms REALLY are could be something different. Even if you really trust your provider, never neglect to sit down and read over EVERYTHING yourself. You may find creative or inventive ways to save money and pay down your principle, thereby saving money and shortening the life of your loan at the same time!

Whether you live in Auckland, Wellington, Christchurch, Waitakere, Invercargill, Manukau City, North Shore, Otago, Nelson, Tauranga, Canterbury, Dunedin or any other part of New Zealand, if you would like some help looking over your loan and would like to further explore the possibilities of being debt free, simply call us at 0800 332 827.