Comments on: 40 year fixed rate mortgage: In debt for 40 years? http://www.youneedabudget.com/blog/2005/40-year-fixed-rate-mortgage-in-debt-for-40-years/ You haven't budgeted like this. Fri, 03 Feb 2012 04:59:02 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Ann http://www.youneedabudget.com/blog/2005/40-year-fixed-rate-mortgage-in-debt-for-40-years/#comment-302 Ann Mon, 03 Nov 2008 05:45:08 +0000 http://www.youneedabudget.com/blog/?p=108#comment-302 Hi Jesse The only way you can beat the system with a longer mortgage and reduce payment is to continue to pay higher than the required contributions. This means that the extra payments come automatically of the principle. Also by paying fortnightly or weekly also reduces the interest payable(which is calculated on a daily balance). In Australia you try to pay as much above the required monthly payments as possible and at least half of what you are going to pay fortnightly. Thus you can save thousands and reduce your mortgage by years. Hi Jesse

The only way you can beat the system with a longer mortgage and reduce payment is to continue to pay higher than the required contributions. This means that the extra payments come automatically of the principle. Also by paying fortnightly or weekly also reduces the interest payable(which is calculated on a daily balance).

In Australia you try to pay as much above the required monthly payments as possible and at least half of what you are going to pay fortnightly. Thus you can save thousands and reduce your mortgage by years.

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