With 2016 just a few days away, a reflection on the year past and plans for the New Year’s resolution comes with concluding another year in our lives. Making better decisions financially is always high on the priority list. One area where fine tuning will always be welcome is the repayment of your home loan.
Food for Thought. By paying a small additional amount each month on your bond you can save a lot of money. The table below shows how much you can save as well as the reduced term resulting from additional payment on your bond.
The table is based on a R1 000 000 bond at a rate of 8.5% with a repayment term of 20 years
| MONTHLY PREMUIM |
ADITIONAL MONTHLY PREMIUM |
REPAYMENT TERM | TOTAL PAYMENT | CASH SAVINGS |
| R8 678.00 | R0.00 | 20 | R2 082 776 | R0 |
| R8 854.00 | R176.00 | 19 | R2 018 816 | R63 960 |
| R9 055.00 | R376.00 | 18 | R1 955 788 | R126 988 |
| R9 283.00 | R605.00 | 17 | R1 893 716 | R189 060 |
| R9 545.00 | R867.00 | 16 | R1 832 623 | R250 153 |
| R9 847.00 | R1 169.00 | 15 | R1 772 531 | R310 245 |
| R10 199.00 | R1 521.00 | 14 | R1 713 463 | R369 313 |
| R10 612.00 | R1 934.00 | 13 | R1 655 439 | R427 336 |
| R11 101.00 | R2 422.00 | 12 | R1 598 480 | R484 296 |
| R11 686.00 | R3 008.00 | 11 | R1 542 604 | R540 172 |
| R12 399.00 | R3 720.00 | 10 | R1 487 828 | R594 947 |
| R13 279.00 | R4 601.00 | 9 | R1 434 170 | R648 606 |
| R14 392.00 | R5 714.00 | 8 | R1 381 644 | R701 131 |
| 15836 | R7 158.00 | 7 | R1 330 265 | R752 511 |
| 17778 | R9 100.00 | 6 | R1 330 265 | R802 732 |
| 20517 | R11 838.00 | 5 | R1 230 992 | R851 784 |
This is just one of the ways you save money with your Home Loan. Every little bit you pay extra into your bond will save money.
Here is to happy planning!
Taken from: http://www.linkedin.com/pulse/pay-off-your-home-loan-faster-mega-savings-judy-venter
