As mortgage brokers, one of the most common questions we are asked is: “How can I reduce mortgage payments?”
So we sat down and distilled what we do into this guide, “10 ways to reduce mortgage repayments“.
Your mortgage consists of:
- principal – the amount you borrowed to buy your home
- interest – the amount you pay your lender and
- fees for arranging and having the mortgage facility
The interest on a mortgage is substantial because you are borrowing over such long periods of time.
For example a standard variable 25 year loan of $350,000 at 6.25% interest would cost $692,652.85 – with nearly half the total cost being interest.