Save On Interest

HOW TO SAVE THOUSANDS OF EUROS IN INTEREST AND PAY YOUR MORTGAGE OFF FASTER

There are a few easy ways to make extra principle payments that can save you a ton of money in interest expenses and get you mortgage-free sooner than you thought possible. Here are a few simple strategies you can use:

1. ROUND YOUR MONTHLY PAYMENT UP

The results of this simple strategy can save you a fortune and drastically reduce the length of your mortgage.

As an example, if your monthly mortgage payments were €734 euros a month, but you rounded it up to €800 per month, you would save more than €48.000 in interest payments, and reduce the length of your mortgage by 7.5 years!

2. MAKE ONE TIME PRE-PAYMENTS USING YOUR INCOME TAX REFUND

This is an easy way to save money and shorten your mortgage. For example, if you have a €100.000 mortgage, and you have a €1000 tax refund this year, you apply that refund to your mortgage. Over time, this will save you more than €8.600 and shave 1 year and 1 month off your mortgage! That’s another amazing result of a simple strategy.

3. CHOOSE A 15 YEAR MORTGAGE

If you can afford it, you are far better off getting a 15-year mortgage instead of 30. It won’t cost you much more, and the interest savings are truly incredible.

If you have a mortgage of €100.000 at 8% interest over 15 years, your monthly payment would be about €200 more, but you’d end up saving €92.083 in interest over the life of your mortgage!

Using these strategies is the easiest way to reduce your interest expenses and shorten your mortgage period.