Is it to try as much as possible to shorten the repayment period? After all, the longer the repayment period, the more the interest accrued. However, reducing repayment period means higher installments, and reduced liquidity. The interest saved might be less than potential returns generated if the payments were used for investments.
How about taking on flexible mortgage plans that allow you to overpay or underpay payments each month? Well, good news is, you will be able to somewhat tailor your repayment plan to fit your financial situation. The catch? Such plans often come with higher interest rates. One can probably make a convincing arguement against them since you can always choose to re-finance your mortgage if unforseen circumstances really occur.
What about you? Do you think it's better to get a fixed or flexible mortgage plan? Got a better way on how to repay your mortgage loan? Share your thoughts with us and best answer wins a pair of Shaw Cinema movie passes! Contest ends next Wednesday 14th Jun 09.
What is the best way to pay off your mortgage loan?
Have a good weekend!
Yours Sincerely,
Tony Koh
Webmaster, Qotion.com
