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a penalty for doing so, are you able to redraw your additional payments and does it cost anything to do so.
Savings money on fees as well as interest will go a long way in reducing your mortgages life significantly, so do your research and know what's going to be best for you.

3. Extra Repayments
It doesn't sound much, but an extra $10 each week onto of your weekly repayments can literally save you thousands of dollars off your mortgage, equating to at least a couple of years off the life of your mortgage.

The process of paying additional repayments has a compounding effect that you just can't miss out on. For example, say you paid $2,000 extra one month off your home loan. At the end of the month you save $20 because of this extra repayment. The effect is that you've just paid an extra $20 off your home loan without doing anything. So the next month your additional repayments equal $2,020, and you save a little more then the $20 interest in that month. This effect continues until you either re draw the additional balance available or the term of the mortgage has expired.

I'm a big fan of the mortgage we currently have. It has a redraw facility that has essentially no costs associated with it other then the annual fee we have to pay. I've set my accounts up so that all my savings that I've set aside for either a rainy day or a holiday sits in my mortgage as additional repayments until I need them. This is great, because I'm saving a stack load of interest on my mortgage, including benefiting from the compounding effect that you just could not get if you put this cash into a term deposit or cash fund.

Before you decide on if you should be putting additional repayments on your mortgage, you should first assess your current position. Do you have credit cards where paying these off first would have a larger effect? Preparing a budget, trimming some costs and knowing just where you are financially is the best way of being able to judge where those additional repayments should be going.

4. Don't Add To Your Mortgage
I have lots of friends that love finding out they have some extra equity in there home so they can refinance there mortgage. Generally, this includes adding all there credit card or personal loans on top of the pre existing mortgage so all they have is the one repayment. However, there mortgage is maxed to the limit of what they can borrow again.

My partner and I tried this one time, refinanced and removed our credit card debt. Great, we had a clean slate, or

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