I agree with Carole, after being a Mortgage Broker in Australia for over 10 years I've figured out the only way to reduce your interest is to make extra repayments. Simple, paying weekly (1/4 of monthly) or paying fortnightly (1/2 of monthly) is good but anything you can do makes a huge difference in the long run. Especially if you have a 30 year mortgage.
As a rule of thumb paying $1 off the principal at the beginning of the mortgage will save you $2 in interest. So pay off as much as you can at the start.
|