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Still not sure how to calculate how much you can save on your home loan due to lower interest rates?
Here's a breakdown.
A short
#AllThingsPropertySA
Here's a breakdown.
A short
#AllThingsPropertySA
The first thing: Get comfortable with working the numbers and using different online calculators to help you see how much you can save when you pay extra.
Here's a good Extra Payments Calculator you can play around with: https://www.ooba.co.za/home-loan/extra-bond-payments-calculator/ #AllThingsPropertySA
Here's a good Extra Payments Calculator you can play around with: https://www.ooba.co.za/home-loan/extra-bond-payments-calculator/ #AllThingsPropertySA
So let's play around a bit. Let's assume you have:
1. R800k home loan
2. The interest rate is prime (stays this amount throughout the term)
3. 18 years left to pay off
If you paid 10k (once off) you would essentially save R 456,091
#AllThingsPropertySA
1. R800k home loan
2. The interest rate is prime (stays this amount throughout the term)
3. 18 years left to pay off
If you paid 10k (once off) you would essentially save R 456,091
#AllThingsPropertySA
I've been playing around with the calculator this afternoon and exploring different scenarios. Paying extra money into your bond will shorten your payment period and essentially save you money.
#AllThingsPropertySA
#AllThingsPropertySA
A lot of us likely won't have a lump sum to add into a home loan facility. Adding smaller amounts monthly, also saves you money.
Here's an example of how paying R500 extra every month can reduce your loan term by nearly 6 years.
#AllThingsPropertySA
Here's an example of how paying R500 extra every month can reduce your loan term by nearly 6 years.
#AllThingsPropertySA
[POLL] I'd like to hear from you about how you pay off your home loan and the additional payments you make/don't make.
Do you:
#AllThingsPropertySA
Do you:
#AllThingsPropertySA
So what does this all mean?
1. Pay more than the minimum amount, as much as you can
2. You can make an additional lump-sum payment (even one).
3. Play around with the calculator to see how much you can save.
#AllThingsPropertySA
1. Pay more than the minimum amount, as much as you can
2. You can make an additional lump-sum payment (even one).
3. Play around with the calculator to see how much you can save.
#AllThingsPropertySA
