Sunday, June 10, 2007
Money saving Tips - Mortage
Lots of have mortgages thinking that they are a great way to invest money. However, you tend to pay back at least 3 times the amount you borrowed by the time you have paid off the loan(depending on the interest rate, term and amount that you borrowed). This means that there is a good reason to try to save money. I have therefore decided to pay off my mortgage early. I therefore pay not only the interest payments each month but also overpay some money and I invest some money. This means that if my stocks and shares ISA does not do that well, I know I have some money safe (and offset against the mortgage) to help pay it off. You need to be careful in looking at offset mortgages as the interest rates can be higher and you could end up paying large fees for the privilage of paying it off early. We currently pay over £1000 towards our mortgage in interest, investments and paying off the loan. This means that once it is paid off we will have an extra £1000 a month to play with. The thought of this is great inspiration to keep working at paying it off.