I recently saw someone try, not very well, to type an explanation about Australian mortgages. I also heard someone try to explain one to Bob Brinker, but he didn%26#039;t seem to like the idea.
However, I still don%26#039;t get it.
I know it%26#039;s something with an adjustable rate 20 year mortgage with variable payments. They don%26#039;t do traditional fixed rate mortgages at all.
Anyone know what%26#039;s up?
What%26#039;s up with the %26quot;Australian Mortgage%26quot;?
The interest is calculated weekly and you pay weekly, meaning that the interest is paid off in addition to the capital, therefore your balance reduces much faster,in turn reducing the term (you can extend the term if you wish, to reduce repayments ) the interest rate can be fixed for certain periods, however if it%26#039;s not you can benefit enormously from variations. We swapped to an Australian (type) mortgage, keeping our repayment the same, we reduced the term from 25 to 17 years - only have 7 left and the balance is even less than the initial projection, you get a new payment schedule every year.
You need to get a full run down and a projected payment plan which will show you how much the repayments are per week and also what the balance will be at the end of every year, they really do work - I look forward to getting my mortgage statement!
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