/ 23 May 2011

Best date to pay extra into your bond

Cheryl: I want to pay off the balance of my bond more quickly. Is it better to just pay more on my monthly bond instalment or is it better to make a second payment into the bond two weeks later?

Maya replies: According to Jan Kleynhans of FNB Home Loans, interest is charged on a daily basis so the sooner you pay in the additional funds the better. He says ideally pay in the extra at the start of the month following the billing date — in other words, when payment is due. So just increase your monthly bond repayment.

Read more news, blogs, tips and Q&As in our Smart Money section. Post questions on the site for independent and researched information