Two Benefits of Paying off Your Home Loan Early

We share two benefits of paying off your mortgage earlier than your loan term.

Being a homeowner is a significant achievement, but there are some benefits that you could unlock if you’re considering paying off your mortgage earlier.  

1. To reduce interest 

Interest is the cost you need to pay back to the lender or bank for borrowing their money. The amount of interest charged to your home loan during the life of a loan can accumulate substantially. By paying off your home loan faster, you can potentially save yourself paying off additional interest and the overall amount you pay. 

2. To build equity faster

Equity is the difference between the value of your property and the amount you still owe on your home loan. It can build up over time as you reduce your loan amount with principal and interest repayments, and if the market value of the property increases. When you pay off your home loan faster, this will help increase the amount of equity you can tap into to borrow more money to use as a deposit for your next home or investment property. 

You could also refinance your home loan to a shorter term or to low rates, like ours at Unloan. Learn more about our features. 

The article does not have regard for the financial situation or needs of any reader and must not be relied upon as financial product advice. As this information has been prepared without considering your objectives, financial situation or needs, you should, before acting on this, consider the appropriateness to your circumstances.

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