How can I pay off my mortgage faster and save interest?

1. Create a budget:

Having a budget is crucial to managing you finances effectively. By tracking your income and expenses, you can identify how much money you can allocate towards paying off your mortgage faster. This step helps you understand your financial situation and prioritise your mortgage payments.

2. Make extra payments:

Making additional payments towards your mortgage principal can significantly reduce the interest you’ll pay over the life of the loan. By paying down the principal amount whenever you can, you’re effectively decreasing the balance on which interest is calculated. However, it’s important to check with your lender regarding any prepayment penalties or restrictions that may apply.

3. Increase regular loan repayments:

If your budget allows, consider increasing your regular mortgage payments. This extra amount goes directly towards the principal and reduces the interest charged over time.

4. Utilise mortgage repayment calculators:

Mortgage repayment calculators are helpful tools to visualize the impact of extra payments on your mortgage. They allow you to see how much you can save in interest and how the loan term shortens based on your additional payments. This can be very motivating and provide a clear picture of your progress.

5. Consult with advisors

Seeking advice from financial advisors or mortgage professionals, such as Achiva, can offer valuable insights tailored to your specific situation. They can help you explore different strategies for paying off your mortgage faster and guide you toward the most suitable options.