A home is probably the largest investment made in a person’s life. Taking up a loan with a bank is the quickest way to own it and servicing the loan monthly will become a part of your life for the next 20 to 30 years.
Most of us don’t even know how much or how the bank calculates the interest charged.
If you have taken up mortgages that requires you to pay interest only then you should revert back to capital repayment, or overpay accordingly, as interest rates have reduced substantially.
Paying just a little extra every month can help you save a lot and shorten your repayment term. Many people don’t know this.
For example, if you have a $200,000.00 housing loan at 10 % for a 30 year period and pay an additional $50 each month, you will pay off the loan four years earlier and save $65,000.00 in interest.
Go and check on the current mortgages. Choose wisely and if the existing interest that you are paying is higher, ask for a reduction or refinancing your property. You’ll be surprise to see the huge amount that you are able to save.
There are many financial products offered by the banks that can help you to save. Take the initiative and talk to the bankers. Be smart, you can save.
“If you would be wealthy, think of saving as well as getting” – Benjamin Franklin
There are various types of mortgages.
Among which I personally prefer reverse mortgage, since it is preferably good for people of age more than 60 years.