We reduce our mortgage loan by $240K in 15 months🥹
Never realised that we have made so much progress with our mortgage loan until we sit down to tidy our finances. 🤯🤯
Having our mortgage loan going up from 1.x% to the current 4.x% definitely motivates us to make prepayment as quickly as possible.
Calculating how much we have paid in mortgage interest is another push factor. In fact, after these prepayment, we are expected to save about $202k in future mortgage interest.
Currently, we are in a really good place where we have less than 10 years of mortgage loan and we feel so much mentally free from being too concerned about money in current uncertain market conditions.
Technically, if we were to invest the money, we “probably” can do better, given that the investment returns over the past years are pretty solid.
At the end of the day, we definitely feel more financially secured, given that we have news of potential layoff in our work.
What would you do, invest or repay loan?
Read more about our loan repayment progress in our blog ➡️ https://sharehook.com
#Lemon8SG #lemon8finance #sgfinance #moneytalk #personalfinances
During our 15-month mortgage prepayment journey, the timeline of interest rate changes played a critical role in our repayment strategy. Initially locked in at a low 1.x% rate for the first few years, our mortgage rate eventually increased to a steady 4.x%, motivating us to accelerate payments and reduce overall interest costs. Understanding the timeline of mortgage rate locks and repricing periods is essential for anyone looking to optimize loan repayment. A mortgage rate lock timeline graphic can visually illustrate key periods such as fixed-rate windows, repricing moments, and how these shifts impact monthly payments and total interest. For example, our mortgage started with a 2-year fixed period tied to a fixed deposit rate, followed by repricing linked to the mortgage board rate. Knowing when these lock periods end and when the loan shifts to a variable or fixed rate helps in planning prepayments strategically to save the most interest. In our case, making early prepayments during the transition from a low fixed rate to a higher variable rate maximized the savings on future interest, making our accelerated repayments more beneficial financially than investing the money elsewhere. If you’re considering whether to invest or repay your mortgage, closely analyzing your mortgage rate timeline can provide clarity. It helps quantify potential interest savings and assess how changing rates affect your financial plan. Visual aids like mortgage rate lock timeline graphics have been highly useful for us in staying informed and motivated throughout this process. Ultimately, sharing these detailed mortgage timelines and prepayment progress not only documents our achievement but also offers practical insights to others navigating their mortgages during fluctuating interest rate environments.
