What Are the Benefits of Weekly Mortgage Repayments?
Several homeowners accept the monthly repayments attached to their home loans. It’s the traditional method. Some homeowners benefit from taking a look at weekly mortgage repayments. After setting up the automatic payments, the homeowner only needs to ensure that the funds are in the corresponding bank account.
Here we explore the main benefit that the more frequent repayment option offers.
When it comes to debt, the longer you have it, the more interest it accrues. On a credit card, if you charge any amount and wait for more than one billing cycle to pay it off, the outstanding balance accrues more interest.
The closer the outstanding balance reaches zero, the less interest you accrue. Setting up weekly repayments chips away at the principal faster. This leads to savings that are meaningful for some households.
For example, if you borrow $400,000 at 3% interest over 30 years, you receive a monthly repayment of $1,686.42. If you opt for weekly repayments, you pay $388.94 every week.
This represents a monthly savings of $130.66.
In some ways, a weekly repayment is less pressure. Since the payments are smaller, it’s smaller chunks to tackle. To reap this benefit, ensure that you pick the right loan from the beginning. A Mortgage House loan specialist outlines the products that fit this preference and home loan rates.
Weekly Mortgage Repayments Conclusion
Those interested in exploring weekly mortgage repayments in more detail can contact our Mortgage House loan specialists. They have the tools to deliver more precise benefits. Call us today.