$20 extra to your home loan

We've heard it all before - pay extra off your home loan and you'll pay it off quicker and save heaps of money on interest.

As with a lot of things, we don't really think about it too much until the cold hard facts are presented in dollar terms.

So here we go.....
Assuming $300,00 home loan over 25 years
Repayment frequency - Fortnightly
Interest rate of 6%

By adding as little as $10 per fortnight to your repayments you could save almost $8,300 in interest over the term of the loan.

Let push the boat out and make is $20 per fortnight - that's $10 per week - would you miss $10 per week?

If you pay an extra $20 per fortnight back on your home loan you could say a whopping $16,050 in interest [payments over the term of the loan. And instead of taking 25 years to pay it off you could pay it off in less than 24 years!

Lets convert that to an annual saving - that's another $642!