🔥 Hot tip: Save more by refinancing your mortgage but keeping repayments the same
Refinancing to a mortgage with a lower rate saves you money every month, because your repayments are lower. However, you can save yourself even more money in the long run by switching to a lower rate and keeping your repayments the same as they were before.
This way, you’re making extra repayments every month because you’re paying off slightly more than you need. So you’re paying the same as before, but it’s paying off your principal faster.
If your new mortgage has an offset account, you can simply save the extra money there. In this way, it functions just like an additional repayment.