Maintain your repayment

If interest rates fall, maintain your repayments at the same level.  You are already used to not having the extra dollars so stick to the same repayment amount.

For example:

• $300,000 loan at 7.50% (principal and interest) over 30 yearsMonthly repayment - $2,098
• $300,000 loan at 7.25% (principal and interest) over 30 yearsMonthly repayment - $2,047

By continuing to pay $2,098 per month you would be overpaying by $51 per which could save you $40,000 in interest over the term of the loan and reduce your term by over 2 years!

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