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australia is weird

June 6th, 2019 at 07:14 pm

I was talking to a morg person the other day as when we buy a house we want it paid off in 5-8 years...ad I asked so if we pay extra payments on the morg and something happens does that mean we don't have to pay it for a few months since we would be ahead...they are like no...you still have to make the monthly payment...I thougt that was kinda rough they do everything to make things hard over here for us...but will sure be looking around and making sure we find everything out in the next year or so....apparently they do this with all loans but since we haven't had a loan in a few years we just don't really pay attention..guess we had better start doing some research so we can get the best deal for us.

3 Responses to “australia is weird”

  1. Carol Says:

    You can pay ahead in the US, but you still need to make each monthly payment. It just means you pay less in interest in the end.

  2. fireandi Says:

    I believe they do this not just ion Australia, but everywhere. It takes off payments at the end of the loan so you're making fewer payments overall, but not in-between. I would recommend having about 6 months of expenses (mortgage/rent/regular fixed and variable expenses) in a high-yield savings account for emergencies. After that, you can pay your mortgage down with extra payments. This way if something does happen that prevents you from being able to make payments, you will have the money in the EF and that will prevent your interest from skyrocketing and from your home being repossessed.

  3. rob62521 Says:

    I was going to comment the same thing Carol said. But, doing research is always a fine idea to make sure you know what you are signing.

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