Skip to main content
#
A Clear Direction
rss feedour twitterour facebook page linkdin
home
Financial Advisor Brisbane - AdviserScott Keefer - A Clear DirectionBuilding Investment PortfoliosPortfolio Management ServiceUpdated ContentContact Us - Brisbane Financial Planning
A Clear Direction Financial Planning logo

 Financial Happenings Blog 
Sunday, March 04 2007

Today's courier mail included a quote from Catriona Lowe, CEO of the Consumer Action Law Centre. 

She was talking about mortgages and made the comment that, 'Most claims to reduce your mortgage involve paying more money - it's as simple as that'.

She is, of course, correct.  Consider for example the first commonly promoted way of reducing your mortgage - halve your monthly payment and then pay it fortnightly. There are 12 months in a year and 26 fortnights, so by doing this you are effectively making an extra months worth of repayments.  Or consider the strategy of paying your income to your home loan, then putting your expenses on a credit card that is paid off from your home loan.  All you are really doing is putting more money toward your home loan sooner.

A home loan is simple maths.  Interest accrues on the balance.  The balance is reduced by your payments.  If you want to get ahead you must make extra payments.  It's not really rocket science.

It is a great personal finance strategy too, make extra repayments early to reduce your loan and get rid of any potential 'interest rate stress' if rates ever rise.

Cheers

Scott Francis

Posted by: Scott Francis AT 07:47 pm   |  Permalink   |  Email
 
Scott Francis' articles in the Eureka Report 
Request for Information 
If you have questions, or would like more information, please go to our Contact page and leave your name and contact information.

Plan Well, Invest Well, Live Well! Financial advice providing a clear direction

A Clear Direction Financial Planning and Portfolio Management ABN 85 147 572 870

Level 19
10 Eagle Street
Brisbane QLD Australia
Ph: (07) 3303 0269
Email: scottk@acleardirection.com.au

Authorised Representative (398444) and Credit Representative (403292) of FYG Planners Pty Ltd AFSL/ACL 224 543.

ASIC - Financial Advisers Register

All content of this website is copyright © A Clear Direction Financial Planning Pty Ltd, 2017

FYG Planners Pty Ltd & A Clear Direction Financial Planning Privacy Policy