Learn a Home Loan Strategy from Propellor and Start to Say Goodbye to Debt

The Importance of Strategies to Pay Off Your Home Loan Faster

There is some debate about whether paying off a mortgage early is a good idea. Every situation is different, but here are a few good reasons that, when it comes to home loan repayment, the best strategy may be to pay your mortgage off as soon as possible.

• So that you benefit from your money not your lender. The most obvious reason to pay off a mortgage early is that you’ll pay less overall in interest. Making additional payments to pay off your mortgage early reduces both your debt and the interest that you will owe going forward.
• For more financial flexibility. Not having to make a monthly mortgage payment makes your regular monthly expenses much easier to cover. If you’re still working, the money that you used to apply to your mortgage can instead be accessed for big-ticket items such as college, retirements savings, or additional property investment.
• To save on unnecessary mortgage-related services. Mortgages often come with additional services that cost extra fees such as mortgage insurance. Paying down your loan early helps you to get out from under these fees.

Common Mistakes People Make Regarding Their Home Loan Repayment and the Best Strategy

As with most things, paying off your mortgage early isn’t without its own potential pitfalls. If you want to get ahead of schedule, be sure to avoid these common mistakes:

• Not knowing all your options. You don’t know what you don’t know, so it’s essential to find out all you can (preferably with help from a trusted professional team) before making financial decisions.
• Not asking whether there is a prepayment penalty. Many people assume that there won’t be, and there often isn’t. Ask so that you know for sure, as these penalties can be substantial.
• Letting yourself become cash-poor. Spending more each month to pay off your mortgage early may be a great strategy but not if it leaves you scrambling to pay other bills.

Why Trust Propellor Regarding Strategies to Pay off Your Home Loan Faster?

For ten years, Propellor has been helping people in New Zealand make smart investment choices. We create bespoke strategies that help our clients reach their short-, medium-, and long-term goals. We can perform due diligence for you, making it easy for you to get all the facts before deciding how to proceed.

The best way to succeed at property investment is to treat it like a business, which means that you need the valuable advice that only experienced industry professionals can provide. Contact Propellor today to learn about building security through property investment.