I read this article mid 2008 from Personal Finance. I just love how it stresses how important it is to knock you bond by an extra 10-20k when you have the cash lying around.
Put this into perspective…
Article
It may be difficult for you to meet all your financial commitments, but make sure you don’t skip a mortgage bond repayment, because it will ultimately cost you a lot more than you may think.
Nedbank Home Loans Division says if you had a mortgage bond of R615 000 at 14.5 percent (one percentage point below the prime interest rate) and a repayment period of 20 years, your monthly instalment would be R7 872.
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If you skipped your first payment and did not make arrangements to pay it off, then continued your repayments of R7 872 a month, you would add 21 months to your repayment period.
Instead of repaying a total of R1 889 277, you would incur additional interest of R165 312 and ultimately pay off R2 054 589.