Your Home Loan Cheap or Cheapest
How to Make Your Home Loan the Cheapest
Anyone who owns a home and is repaying a 25 year plus mortgage, wants their home loan cheap. Oddly enough this does not always mean the lowest interest rate, or even the cheapest home loan in terms of fees and charges.
The home loan cheapest to you in the long run is the loan that not only has a competitive interest rate and the lowest ongoing costs. It is the home loan that best suits you, how you want to organise your money and most importantly the one you can repay the fastest.
Why do you want to pay off your home loan as fast as possible?
Home owners usually see their mortgage in only one way, a big lump of money that they have borrowed from their lender to buy their home, and of course that is 100% correct. Though I must admit I tend to look at your mortgage a little differently. I agree there is your home loan principal to consider, the part of your home loan that I am talking about is your home loan interest charge.
This interest charged on your mortgage is the rent that your lender charges you for the use of their money. It is no different than using a hire car for the weekend, or renting an overnight DVD. It is exactly the as the rent you would pay for holiday cottage for a weekend by the sea.
That said, the bottom line is, longer you stay, the more you pay. Your home loan works in exactly this way. The only difference between your home loan and these other examples is the amount of money involved.
Now without getting too technical, the first few years that you are repaying you home loan, about 90% of your repayments are chewed up by the interest alone. This leaves about 10% of your repayment amount to actually reduce your mortgage principal by (the amount you originally borrowed to buy your home).
A Fast Start Makes Your Home Loan Cheap
This interest & principal ratio gradually changes as time goes by. Over the years the portion of your repayment allocated to reducing your mortgage increases while the amount that repays your loans interest decreases. This is why fast tracking your loan term is so important, and will help make your home loan cheap.
In fact when you adopt my simple and effective Rapid Mortgage Reduction strategies, it will give you a home loan cheapest by far than any other way possible.
Low fees and charges are good, competitive interest rates - absolutely, though to really get your home loan cheap, you have to do things a little bit smarter.
This does not mean becoming a slave to your mortgage, in fact the opposite is true. Rapid Mortgage Reduction places you in the drivers seat with your home loan, once you are in the drivers seat we can work together and focus on moving you into the fast lane and help you get where you want to be that much sooner.
If you are interested in more information on making your home loan the cheapest around give me a call (1300 365 363). If you prefer you can to do it all online, follow the link to my online "" Form, and I will discover what gold is hidden in your home loan.
Thanks for reading.
Kind Regards
Jamie Wadley
HunterWide Home Loans
© 2009 Hunterwide Home Loans, 281 Watkins Road, Wangi N.S.W. 2267 - 1300 365 363
