I've got a small inverter and solar installation (Sunsynk 5kw inverter, Sunsynk 5.32kWh battery and 3,270kw panels) and would like to double the battery and panels. Between this, my gas geyser, more efficient lighting ect and better usage habits, I've brought my Eskom power consumption down from over 1,000 units to about 300 units per month (less than R700) plus gas. I'm currently having a saving of >R1500 per month.
I'd like to put these savings to good use and finance my expansion with my saving.
I'm battling to determine which is the better option to finance this:
- Do I opt for an extension on my home loan - this will then obviously be on a better interest rate but a longer period (about 20 years). This will probably have a couple of hundred rand per month impact on the instalment, but I'm going to pay the total saved per month (initially R1,500) and after a couple of months increase this to the new amount saved, or
- Get a shorter term loan (whether it be an overdraft, revolving loan, personal loan, ect), but this is going to be at a higher interest rate. Repayment is going to be the same as above.
I've tried to do calculations on the first option to try and determine what the benefit would be with higher repayments, but my math is at a loss... The same with my common sense trying to reason which is the better option.
Who can assist me with some insight or calculations?
I'd like to put these savings to good use and finance my expansion with my saving.
I'm battling to determine which is the better option to finance this:
- Do I opt for an extension on my home loan - this will then obviously be on a better interest rate but a longer period (about 20 years). This will probably have a couple of hundred rand per month impact on the instalment, but I'm going to pay the total saved per month (initially R1,500) and after a couple of months increase this to the new amount saved, or
- Get a shorter term loan (whether it be an overdraft, revolving loan, personal loan, ect), but this is going to be at a higher interest rate. Repayment is going to be the same as above.
I've tried to do calculations on the first option to try and determine what the benefit would be with higher repayments, but my math is at a loss... The same with my common sense trying to reason which is the better option.
Who can assist me with some insight or calculations?
