What Are the Benefits of Fortnightly Mortgage Repayments?
Aside from monthly mortgage repayments, it’s also possible to make fortnightly mortgage repayments. Those interested in sending an extra payment monthly must ensure that they pick the appropriate loan product. Some don’t accommodate the additional payments.
If you find the right home loan, the option provides worthwhile benefits, namely savings. It can also provide some peace of mind.
For homeowners who obtain a $400,000 mortgage at 3.5% over 30 years, the monthly repayment equals $1,796.19. If you opt for fortnightly repayments, the payments equal $828.65. This represents a savings of $138.89.
Some households look for savings on their mortgage in any way possible.
Since the lender will ask the homeowner to establish automatic repayments from their checking account, you don’t need to worry about remembering the extra payment due date. The repayments occur automatically. If the funds are in the account, it’s not something you need to think about.
Plus, the homeowner reduces the principal more quickly. Frequent repayments don’t have a noticeable impact on the homeowner’s credit report. Instead, it allows them to pay off their debt a little bit quicker.
For some homeowners paying their mortgage in smaller chunks makes the process easier. Remember that home loan interest rates play a role.
Fortnightly Mortgage Repayments Conclusion
Those interested in setting up fortnightly mortgage repayments can contact our Mortgage House loan specialists. They can discuss your options and potential savings. The team takes a look at your current financial situation and the amount you need to borrow. They match your goals to an appropriate home loan product. Call our team today.