We pay the minimum - we have an offset account and keep all our money in there, it reduces the interest and we have easy access to it if needed. It's much better than paying extra on repayments.
For our investment property, we only pay the interest, so the principle amount doesn't reduce. The rent from the property covers the interest payments so we rarely need to put money into it these days.
It all depends on your strategy - we prefer to buy smart and leverage the increase in value (either growth in the value of the area/land or by renovating). DH doesn't believe in paying off mortgages!
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12-06-2012 07:07 #11
12-06-2012 07:08 #12
Atm $80 a week. When dh becomes permanent in his new job (3 weeks) we will be paying $400-$800 off extra a week. Once we do this our mortgage should be paid off in 5/7 years.
Our mortgage is just under $200k. Our repayments a week is less then$300 if we only paid what we had too.
12-06-2012 07:58 #13
We pay about an extra $100 a week but will stop when I am on unpaid mat leave. We pay off interest and capital and also keep the vast majority of our money in an offset account. We just have our weekly spending money in an everyday account and that's it.
We do have a large mortgage (we live in inner Melbourne so you get the idea!) so no way it will be paid off any time soon. Our plan is to move to a bigger place in a year with an even bigger mortgage but we will be able to sell at a profit which will pay the deposit and costs, etc of buying elsewhere.
By CleverClogs in forum Family FinancesReplies: 13Last Post: 04-08-2012, 22:05
By bellieellie in forum Family FinancesReplies: 42Last Post: 12-07-2012, 20:14
By suemp in forum General ChatReplies: 37Last Post: 10-07-2012, 00:56
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