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How to Reduce my Interest Costs

September 4, 2009 in Latest News by admin  |  No Comments

Over the last few months most borrowers have asked themselves the question “To Fix or Not to Fix”. 

Recent increases in Fixed Interest Rates and the fact that Variable Interest Rates remain at record lows have prompted many respected economists (e.g. Paul Clitheroe – Money Magazine) to suggest that if you haven’t changed yet you have probably left your run too late.

So how can you protect yourself against the potential of rising interest costs if your Home Loan has a Variable Interest Rate?

Simply increase your Home Loan repayments to the amount that you would have paid if you did have a Fixed Interest Rate. As the current Fixed Rates are higher than the Variable Rates your new repayment will be more than your current repayment amount. As a result of the higher payment and the lower Variable Interest Rate you pay a larger chunk off your Home Loan each and every month / fortnight / week.

Remember the golden rule … The less you owe … the more you SAVE !!!

These savings are reducing your interest costs which will save you $$$ and also will help offset any future increases in interest rates.

This is a very simple, yet very effective method of making your money work for you and not the Banks !!!

Posted in Latest News.