Posted 25 July 2005 - 07:11 PM
B's girl - we plan to probably move to a offset type loan after the first 12 months. We were going to do it straight away but our broker got us a great fixed interest rate for the first year and we can pay as much as we want extra without any fees or penalty charges.
We have closed our savings account ready to put the extra on the mortgage for the very reason we don't have to pay tax on the interest we would have earned in the savings account, it will save us interest instead.
We think we'll pay all of DH's fortnightly salary (min. payment required plus extra, so we will be paying about one and half payments each fortnight) into the mortgage and live off of my monthly salary (which has about 5% spare/unallocated to expenses/fun/living). That should give us a good balance and achieve the goal of paying off extra.
Posted 25 July 2005 - 07:46 PM
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Posted 26 July 2005 - 04:42 PM
until we get married we are just paying weekly. just by splitting the monthly minimum payment into 4 (generally 4 wks p/month) your taking nearly 2 years off the loan.
after the wedding i am hoping to pay extra, but we will see when that time comes, something else is bound to happen
Posted 26 July 2005 - 05:29 PM
We are unsure what we are going to do, i think we might dump a few extra dollars in there every week - klay and i are determined not to let our life become too boring! Its a lifetime debt bascially and you cant throw your life away just have to be sensisble!!
We put extra into the loan we got for our car and for the wedding, and it was amazing over the 11 months of whatever we have it how much putting in $4.00 a week has built up and made a difference!
KBW - 031107
MAW - 220310
Posted 27 July 2005 - 07:40 PM
Just wanted to say "Thanks" for the replies. Thanks to 'dee82' for the loan calculator.
Best wishes to everyone for a very lovely Wedding Day that you are planning! It really is a very special day and you will look back on it very fondly!!
Good luck with the mortgages aswell!
Posted 04 August 2005 - 04:28 PM
We still have that extra mone built up in re-draw too if we really need it for an emergency.
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Posted 15 August 2005 - 10:11 PM
We've recently opened an offset account and rather than diverting money to a savings account we now put excess cash in the offset and are trying to grow this amount.
We love life (and spending) too much to put all of cash into our mortgage. While it would be very very wise to do so we just aren't prepared to live like paupers.
I have started paying an extra $400 a month in addition to our normal repayments. Not a huge amount but I'm sure every little bit will count in the long run.
Posted 25 October 2005 - 02:52 PM
We are both pretty slack with budgets and stuff, but we figure we might as well leave the first year or two and then start making the extra payments down the track. We wanna enjoy newlywed life and really make the most of our trip overseas.
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Posted 25 October 2005 - 04:03 PM
|QUOTE (Goin' to the chapel... @ Oct 25 2005, 02:52 PM)|
|We've been in our home for nearly 8 months now, and there's no way we're able to make extra payments on our mortgage. We still have heaps of stuff to do around the house such as fences, plants, grass etc. .|
Ditto!!! Our situation is the same!!
Posted 25 October 2005 - 05:17 PM
|QUOTE (carls @ Oct 25 2005, 04:03 PM)|
|Ditto!!! Our situation is the same!!|
We are similar - I am earning next to nothing at the moment (finishing studies) and probably still have another 6+ months till I am working fulltime. Luckily hubby gets annual pay rises and bonuses but we are currently just paying the minimum. Having said that we are still looking at selling up and buying again in the new year which will probably result in an extra $300 a month.
Once I am working and earning more steady income we will put more into the loan. At the moment we are comfortable and have plenty of time to pay off some extra.
Posted 25 February 2006 - 11:16 PM
We just pay it all in the lump sum as if it were our normal payments so we dont realise the difference. We also seem to manage fine with paying the extra payments because we still have money left over for saving. We both have good paying jobs which helps alot.
Married: 10 Feb 2007
Chris Lyndon born 19 Feb 2008
Mia Marie born 03 Sept 2009
Posted 26 February 2006 - 09:50 AM
Does anyone know how i change to the offset loan? Like so both of our pays would go onto the loan and then we would pay everything off our credit card? Do you have to have some sorta equity on the house to change over?
KBW - 031107
MAW - 220310
Posted 26 February 2006 - 11:03 AM
Using an offset account and redrawing all the excess every month won't help a great deal (but it will help). The big advantage is putting a little extra in every fornight/month and leaving it there.
A simple example (using the calculator) - if you borrowed $300K at a standard rate and after 5 years started to pay back an extra $100 per fortnight you'd save 3 and a half years off a 25 year mortgage and $50K in interest. If you can afford a little more it's always worth it. Even $20 a fornight will save you $12K in interest and 10 months on the mortgage.
While finding an extra $100 a fortnight might be difficult when you first borrow the money it shouldn't be too hard after 5 years when, hopefully, your salary has increased (inflation/pay rises) but your compulsory payments haven't (unless interest rates rise). But it all depends on personal circumstances.
Posted 26 February 2006 - 04:51 PM
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MAW - 220310
Posted 27 February 2006 - 09:26 AM
Our monthly repayments are $2500 and we usually put about $3200 in so an extra $700 a month.
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