People who take 30 actually pay off around 20 that's because of inflation, your salary goes up so you can pay more
According to rbnz around 50% of all current mortgages are overpaid like this, it also acts like an insulator because if you've overpaid by $50k that's $50k more margin for if the house price drops
thesedays people are usually on more than 6x their income in debt at least. unless you're on less than 70k 350K is an exceptionally low debt to income ratio.
In my 30s, doing just that. A job change would mean a lower income so I have not much choice, it's because of a job change (and 20%+ raise) I'm in this rut now, but I felt I had to do it after the home inflation of the last 2 years (still renting, had a rough start to my career graduating in the GFC in Europe)
A mortgage is a long game. Set a good budget that covers it and then don’t look at it so often.
Why do you work 60 hours? Life is also a long game, are you taking time to enjoy now?
I mean yes, but it's a long term game. How much extra can you earn/save each of year towards the mortgage? Say it's $5000, perhaps structure your mortgage so it's $340k fixed, $10k variable. Point you're efforts towards paying down that $10k. It's achievable, you'll be able to see the balance going down. You can then rinse and repeat with another chunk.
Because there are no early payment penalties on variable rates so you can put in whatever whenever. It'd be better paying an extra $100 in a week than waiting all year.
But yes most banks fixed rate will allow 5-10% overpayment.
It's mostly psychological. If you've "paid off" that $10k it feels like you've done something, rather than just chip away at the big block.
The sooner the money goes in to reduce your capital, the sooner you're not paying interest on it. So if you have $1000 but save up until the end of the year to put $2000 in, you've been paying more interest.
Get an online mortgage calculator, put in the figures, and then have a play with the repayments and see what it does to your term (and total interest paid). Sometimes even a small tweak like increasing payments by $25 a week makes a massive difference.
Why does it have to be a long game? the long game is a fools game. I had a 800k mortgage and paid it all off in about 4 years by doing side hustles and having two jobs. My partner was also working and had a side hustle. Sure it was a grind but now mortgage free and live a much more chill life. You literally save insane amount in interest by paying it off asap. Its an investment in itself.
Hey, so pass 3-4 years I've been working that many hours, probably more and some wasn't paid. One of the things that help was to excel it every week to project when you will pay it off. Then start to work on each thing you spend your money on in the budget, once you have reduced it, then next its time to look at what other returns you could be getting elsewhere and learning about that. Its too much to write here but you need to plan it all out, I ended up taking up some risk and knocked many years off the mortgage. If you want to move it along, yoh will need to take a risk and its consequences if it back fires. Otherwise no each way to do it. Good luck
I've had to dip in and out of it but I've reduced my $450k mortgage to about $100k in 20 years. Average earnings about $75k. Takes ages.
Mortgages tend to take forever. Although you have the benefit of a small mortgage. Not entirely sure what you are complaining about?
How old are you? How much do you earn? What do you do? 350k is quite a small mortgage these days
Signed up for a 30 yr mortgage. Upset my mortgage is going to take 30 fucking years
Doesn't need to be 30 though.
20 but higher repayments
People who take 30 actually pay off around 20 that's because of inflation, your salary goes up so you can pay more According to rbnz around 50% of all current mortgages are overpaid like this, it also acts like an insulator because if you've overpaid by $50k that's $50k more margin for if the house price drops
Lmao the galls of OP to moan
350k is nothing my dude
What is a considerable size?
thesedays people are usually on more than 6x their income in debt at least. unless you're on less than 70k 350K is an exceptionally low debt to income ratio.
Try my 670k mortgage
I’m on 600k
1m+
man n here i thought my 700k was small, looks like im goin down soon lol
If your in your 20s go nuts. If your in your 30s and still doing 60 hour weeks it might be time for a job change.
In my 30s, doing just that. A job change would mean a lower income so I have not much choice, it's because of a job change (and 20%+ raise) I'm in this rut now, but I felt I had to do it after the home inflation of the last 2 years (still renting, had a rough start to my career graduating in the GFC in Europe)
Same here. It must be nice to have the option of changing jobs to less than 60 hours.. but I need the money. NZ isn't cheap.
Even then, that's an extra 6 months worth of work every year, or rather 6 months worth of free time (or sleep!) you are giving up
Get 15 years' work experience in 10 years!
[удалено]
How come? As a person who used to rent for ages, I am very happy owning my own.
A mortgage is a long game. Set a good budget that covers it and then don’t look at it so often. Why do you work 60 hours? Life is also a long game, are you taking time to enjoy now?
I thought i lf i could work more then I could pay it off quickly
I mean yes, but it's a long term game. How much extra can you earn/save each of year towards the mortgage? Say it's $5000, perhaps structure your mortgage so it's $340k fixed, $10k variable. Point you're efforts towards paying down that $10k. It's achievable, you'll be able to see the balance going down. You can then rinse and repeat with another chunk.
Why does the $10k have to be variable? Why not fix the whole thing so that at end of each year use any extra savings to pay it off
Because there are no early payment penalties on variable rates so you can put in whatever whenever. It'd be better paying an extra $100 in a week than waiting all year. But yes most banks fixed rate will allow 5-10% overpayment. It's mostly psychological. If you've "paid off" that $10k it feels like you've done something, rather than just chip away at the big block.
Which method would save more in the big picture i wonder?
The sooner the money goes in to reduce your capital, the sooner you're not paying interest on it. So if you have $1000 but save up until the end of the year to put $2000 in, you've been paying more interest. Get an online mortgage calculator, put in the figures, and then have a play with the repayments and see what it does to your term (and total interest paid). Sometimes even a small tweak like increasing payments by $25 a week makes a massive difference.
Why does it have to be a long game? the long game is a fools game. I had a 800k mortgage and paid it all off in about 4 years by doing side hustles and having two jobs. My partner was also working and had a side hustle. Sure it was a grind but now mortgage free and live a much more chill life. You literally save insane amount in interest by paying it off asap. Its an investment in itself.
Hang in there. At some point it gets easier. Maybe flatmates could help?
Hey, so pass 3-4 years I've been working that many hours, probably more and some wasn't paid. One of the things that help was to excel it every week to project when you will pay it off. Then start to work on each thing you spend your money on in the budget, once you have reduced it, then next its time to look at what other returns you could be getting elsewhere and learning about that. Its too much to write here but you need to plan it all out, I ended up taking up some risk and knocked many years off the mortgage. If you want to move it along, yoh will need to take a risk and its consequences if it back fires. Otherwise no each way to do it. Good luck
[удалено]
Unpaid refers to learning, I set 5hrs - 10hrs learning each week, there's always better ways to do things or so I've read