Tuesday, June 19, 2018

How to save interest on your bond - Free Me 082 8281258


One of the best ways to create wealth is to pay extra into your bond
 Bond of R 500,000.00
Interest/Base Home loan rate:
9.000 %
Monthly repayment:
4195.98
Property type/use rate premium:
0.000 %
HLP Premium:
0.00
Customer rate:
9.000 %
Total repayment:
4195.98
Total monthly income:
20000.00
Loan to value ratio:
0.000 %
Monthly subsidy:
0.00
Loan amount:
500000.00
Registered bond amount:
500000.00
Property purchase price:
0.00
Bond term:
25.00 years
 Example: 1 Paying an extra R 100 pm

Interest / Base Home loan rate:
9.000 %
Monthly repayment (including additional payment):
4295.98
Property type/use rate premium:
0.000 %
Interest saving:
68807.58
Customer rate:
9.000 %
New bond term:
23.08 years
Bond term:
25.00 years
277 months
300 months
Loan amount:
500000.00
Additional payment
100.00
: Example 2 paying an extra R 500 pm
Interest / Base Home loan rate:
9.000 %
Monthly repayment (including additional payment):
4695.98
Property type/use rate premium:
0.000 %
Interest saving:
249158.45
Customer rate:
9.000 %
New bond term:
17.92 years
Bond term:
25.00 years
215 months
300 months
Loan amount:
500000.00
Additional payment
500.00
Example: 3 paying an extra R 1000 pm
Interest / Base Home loan rate:
9.000 %
Monthly repayment (including additional payment):
5195.98
Property type/use rate premium:
0.000 %
Interest saving:
365085.67
Customer rate:
9.000 %
New bond term:
14.33 years
Bond term:
25.00 years
172 months
300 months
Loan amount:
500000.00
Additional payment
1000.00

Example: 4
By splitting your monthly installment into two payments over the month, e.g. the 15th and the 31st of the month, can also help you save on interest.  If your bond repayment is due on the 31st and you make it in two installments – one on the 15th and one on the 31st – you are saving on the daily interest over 15 days
Example: 5
Pay your home owners insurance and life assurance separately and not part of your bond installment as most banks buy the insurance annually and put the annual installment on the bond and you pay interest on the amount (you can shop around for cheaper insurance)

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