For those looking for a way to decrease their interest costs, Chatpong Watanajiraj, vice-president of Kasikornbank's consumer advisory fulfilment department in the retail business division, says there are a ways to do it.

1. Higher monthly payments

Increasing the amount of your monthly payments is the most basic and effective way to cut down [overall] interest costs and pay off your loan faster. It's the method which I recommend to all borrowers

2. Lump-sum payment

A second tactic to shorten the mortgage repayment period is using an annual bonus, on top of the regular monthly payment, to make a much bigger impact on the principal. The method is especially good for wage earners.

3. Refinancing

The other big way to save is refinancing, which will offer a lower fixed interest rate early on and consequently decrease the overall interest payment. Banks usually apply a fixed interest rate for the first three years of the mortgage, with floating interest imposed later to let banks hedge their risks associated with interest rate movements and customers' repayment abilities.

By : Bangkokpost