by globalex (score: 0), 3648 days ago
Hi Lorraine,
Thank you for your reply.
Without a doubt, paying weekly is the sure way to reduce the term of the loan and the amount of interest payments. From your article, I believed your home loan is not an "interest only" loan but a "capital and interest" loan. These 2 loans are completely different. The "capital and interest" loan is one where a portion of the repayment is payment for the capital. The "interest only" loan is where the repayment is all interest - no reduction in the capital borrowed. Regards
globalex
by Lorraine A (score: 3), 3648 days ago
Hi Globalex,
Thanks for reading the article. By repaying a loan weekly instead of monthly, will save thousands for two reasons: firstly interest is charged on a daily basis, so the more frequent the repayments the less interest is charged. Secondly paying weekly means your repaying the equivalent of an extra months repayment each year, this amount comes off the capital/ principal.
Hope this helps, but this really is just general advice, if you need specific information for your home loan talk to your lending consultant.
Kind Regards,
Lorraine