The Real Cost of Lower Mortgage Repayments 💸
Recent rate cuts are great news. But many homeowners are making a big mistake. They are letting their bank lower their mortgage payments. This may sound good. But it can cost you thousands in the long run.
New research shows that many people let their payments drop. Experts warn against this. While extra cash feels nice, it slows your loan. You will pay thousands more in interest.
Why You Should Keep Your Payments the Same
The key is to pay more than you have to. When the bank lowers your payment, you can ask to keep it the same. By doing this, you can pay off your loan much faster. This is smart in the early years of your mortgage. This is because most of your payments go to interest at first.
By keeping your payments steady, you can greatly reduce your total interest cost. This could cut years off your loan. It’s a simple choice that offers a big reward.
Here Are the Numbers
The potential savings are huge.
After the latest rate cut, your monthly payment could drop by about $108. But if you keep paying the same amount, you could pay off your loan a year earlier. This saves you $32,464 in interest!
If you do this after all three rate cuts this year, your payments could have dropped by $273 a month. By paying your original amount, you could pay off your loan over three years early. This would save you an amazing $82,000!
Take Control of Your Mortgage
Some banks change your payments for you. Others do not. No matter what your bank does, you need to take control.
We can help you make a smart plan. We can help you understand your loan and how to pay it off faster.
Contact EZ Mortgage Broker today for a free chat. Let us help you take control of your loan and start saving!
- Phone: 1300 050 099 or 044789007
- Email: [email protected]
Important Information: Mortgage Broker Online Pty Ltd, ABN: 28 657 661 615, Credit Rep Number 538522. AFG Accredited Member (AFG Australian Credit Licence: 389087).
