You are missing the point. This so-called trick is more about the amount you repay in a year than the frequency of repayments. There is no need to refinance a loan to do this. Any lender will allow additional repayments on variable rate loans. This can be done either by changing the direct debit amount or by setting up a periodical payment from a transaction account as often as you like. A professional mortgage broker won't tell someone to refinance just so they can pay more.

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Hi Graham i pay my monthly mortgage but i also have a automatic deduction of $5 per day going onto it and it really starts to cut the interest paid etc especially now the rates are so low. Its only one cup of coffee a day but i dont notice it at all.

Mick

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Compounding Interest question. I have heard that if you set up monthly repayments on a variable homloan, and make a contribution each day for duration of that month, that the interest that you pay with the monthly repayment will allow interest to come off the principal. As you can't set up a daily transfer yourself, only weekly fortnightly or monthly options available, do you think that the bank itself would set up a daily payment of $1 per day for me?

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Rachel you can do it yourself by selecting 7 dates in a row and having each one coming out weekly. I just did it to my loans , yes a pain having to do it for each of the 6 dates, but at least it will continue to come out everyday :-) hope that makes sense.

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