If I was 25 again I would…

If I was 25 again I would… pay extra off my mortgage.

If I could find just $100 extra per month – less than the proverbial cup of coffee every day – and added this to my repayments on a $300,000 mortgage with an interest rate of 3.75% per annum over a term of 25 years, I would save $17,466 in interest, and shave more than two years off the term of the loan.

If I couldn’t make the extra payments regularly I’d aim to use any windfalls to pay down the loan. An additional $1,000 paid at the start of the same mortgage would save me $19,795 in interest over the term!

In practice, the easy way to do this is through a mortgage offset account. This would ensure all my savings, including the extra amounts I can find here and there, are working to reduce my total interest bill. And if interest rates rise, the savings will be magnified.

Rest assured, even if you aren’t 25 anymore, it’s not too late to start paying extra off your mortgage. Any small amount can help to save you on interest that would accumulate in the future.

Be sure to seek advice from a qualified mortgage broker to assess your needs and wants when it comes to your home loan prior to making any big decisions. Brokers work with many different lenders, know their policies and information requirements, and can guide you through what can be a daunting process. This could help you to significantly reduce your fees, interest and stress.

If I was 25 again I would… pay extra off my mortgage.