How does interest rate affect your mortgage?
Many Australians are excited by the latest rate cut; they are saving an average of $625 PA on a
$250,000 loan.
What is the effect of this rate cut on your Home Loan? Does it mean that you can
now pay your home...
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How does interest rate affect your mortgage?
Many Australians are excited by the latest rate cut; they are saving an average of $625 PA on a
$250,000 loan.
What is the effect of this rate cut on your Home Loan? Does it mean that you can
now pay your home loan faster? Does it allow you to have better cash flow?
In this article we’ll answer your questions and show you how does interest rate affect your
mortgage?
Interest is compounding and as your mortgage is generally over 25 or 30 years and any ongoing
savings regardless how minor it looks will have dramatic outcome on it.
Especially in the first 5
years.
When interest rate drops many Home Owners are excited by the idea that they now have few
hundred dollars more to spend every month or year.
And usually the more you earn the more you
spend or in this case the more you have left over at the end of each month the more you spend.
So as Interest rate drops you reduce your monthly repayments to allow you to spend the extra
dollars.
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