Be home free faster!

If you are like many Australian home owners, chances are you feel weighed down by your mortgage. The home loan balance looms overhead like a big grey cloud on an otherwise sunny day.

Such a number can be disheartening when it comes to thinking of paying it off completely or even bringing it down.

While this is a common complaint, it does not have to be one that you continue to make forever.

There are ways to get on top of your home loan debt, and shrink and control it so that it has less of an impact on your everyday life.

Understand interest

The truth is the price you think you are paying for your house at the time of signing is actually far from the total figure.

Interest compounds the amount and can seriously alter the true value of your home when all is said and done.

The larger your principal, the more interest you are going to incur on a monthly basis so it is highly recommended that you try to reduce the balance as quickly as possible.

Take mortgage control

Are you getting everything out of your home loan that you should be? Would refinancing help to get a handle on it?

It is advised that you speak to your local mortgage broker about the features of your home loan and discuss a plan to achieve your goals.

If you are able to make lump sum payments and extra repayments throughout the life of your mortgage, you can make a real impact on reducing your owing balance – as well as accumulated interest.

Utilising bonuses, cash windfalls, tax returns and other extra funds to pay off your mortgage can help immensely in getting you closer to your dreams of debt-free ownership.