How I did it: I bought my first house nearly 21 years ago, when interest rates were around 16%, and had two mortgages.  I lived on a really tight budget for the first couple of years.  Every time the interest rates reduced, I kept my payments the same so I could pay off more principal.  After 8 years I had reduced that morgage down to $14,000 and was in sight of paying it off completely.

I then sold that place and bought my current place, which is a better property but more expensive.  Again I've tried to pay above the minimum payment as much as possible, so that the principal got paid off faster.  As a result the mortgage on this property has been paid off 8 years ahead of the due date.

Lessons & tips: Pay more than the minimum repayment whenever possible, particularly early in the morgage.

Resources: My bank - they are good at answering questions, and calculating different repayments.

www.sorted.org.nz

May 22, 09:36PM PDT | 0 comments | 17 cheers