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Reducing The Mortgage
How to save thousands on your mortgage
The following examples are calculated using the Mortgage Calculator. Please try your own examples at your leisure.A starting example
Your new home costs $300,000.
Now, let's change some of those variables to see how much interest you can save.Increase your deposit by $20,000
You now have a $50,000 deposit and only need to borrow $250,000 over 20 years at 8.0% interest. Monthly repayments are $2,091.
You have a $30,000 deposit and borrow $270,000 over 15 years at 8.0% interest. Monthly repayments are $2,580.
For example, if you were able to increase your monthly repayment by $200 in the original example, from $2,258 to $2,458 per month, you'd reduce the length of your mortgage by approximately 3 years and 6 months. This would result in a saving of $54,576 in interest costs.Or, reduce the interest rate by 0.25%.
You have a $30,000 deposit and borrow $270,000 over 20 years at 7.75% interest. Monthly repayments are $2,217.