Take advantage of the low Interest Rates

The current interest rates are forecasted to increase through 2014. People can still take advantage of the record low rates before it goes up. The best way is to put the money back on your home loan repayments. With the current rates, borrowers are getting an extra $540 annually when the interest rates were pegged at 2.5% since August of last year.

One advantage of paying extra with the interest rate savings is that a huge chunk of this amount goes to the principal of the loan. Paying more than what you own will shorten the life of what you owe, and you will be saving much on interest. This would also be a good time to re-evaluate your current loan scheme, as a lower variable rate loan can save you as much as $63,545 on a $300,000 25 year loan. This is 6 years worth of savings on your mortgage.

Read more about this on the Property Observer website.