See how much money you can save when you make extra repayments throughout your loan. You can reduce the term of your home loan significantly along with the interest you will pay on your mortgage.
Quite often borrowers are earning sufficient income to enable them to increase the regular monthly repayment on their home loan. Rather than just paying the minimum amount due under the mortgage they may nominate a higher monthly repayment. A small increase in the repayment will reduce the interest you will pay under your home loan and the term of the mortgage will also be much shorter.
As an example, on a $350,000 loan @ 5.75% p.a. over a 30 year term, an extra $150 per month (over and above the minimum amount due on your mortgage) would save you $71,244 in interest and reduce your home loan term by 4 years and 9 months.