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Instructions

1

The advantages are obvious: Firstly, the shorter the term, the less the amount of interest that you will pay to "uncle", i.e. the cheaper the loan. Secondly, the released funds can be profitable to invest and receive income. Thirdly, by paying out a loan, you can freely dispose of your new property, say, an apartment.

2

Even before the conclusion of the contract, you should make sure that the possibility of early repayment is provided for and that the bank will not fine you for it (and it happens).

3

Count how much you can increaseregular payments. If at the moment the financial situation is favorable, then even an insignificant (by 10-15%) increase in regular payments can save you up to 10 years of mortgages and save you tens of thousands of dollars (after all, mortgage amounts are usually rather big).

4

If, for example, you sold old housing ormachine, you can make a one-time substantial payment, reducing the amount of the principal debt, which will also favorably affect the further situation and, while maintaining the size of monthly payments, will shorten the term of the mortgage (and therefore its cost).

5

Remember that in all these cases the bank is obligedto recalculate to you the schedule of payments. If you are offered a choice of reducing the time or amount of regular payments, choose a reduction in payments, and the released money is used again to repay the main debt.

6

Keep in mind that the amount of the main debt affects the amount of the annual insurance premium, so that by reducing the amount of the principal debt, you also get savings here.

7

And, finally, remember that early repayment to banksloans are unprofitable, so once again go back to point one and make sure that the terms of the contract allow you a painless early repayment of the loan. Otherwise, either do not enter into a contract, or put up with the fact that the mortgage will have to pay the entire term in full.