Hi guys, this is my first post so, nice to meet everyone.
ok, the question goes :
One of the local financial advisers says that if you are paying off a house you should try to tailer your house repayments so that the loan is paid off as soon as possible but there is little to be saved by paying it off in less than 10 years. Investigate the truth or otherwise of this statement and determine whether there is a mathematical link between time of pay off the loan and savings made.
I just have no idea on how to tackle this problem, but I'm pretty sure that its something quite small that I'm missing and which is the key to the whole thing. The thing is most confusing because logic tells me that the longer you drag out a loan, the more interest you have to pay, thus the less you pay. My only idea as of right now is to graph the percentage rise in interest paid from one year to another and then hopefully the graph will show a fairly straight line in the amount of interest paid for the first 10 years and then start rising to a steeper gradient after that or something. But even if that were the case I'm not sure on how to find the rise in interest paid. Any help will be appreciated, cheers