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You have a mortgage but it may not be the right one for you, so consider some of the following points!
Just remember one simple - thing the less money you owe the bank, the less interest you pay. Repaying an extra $10 per day against a $500,000 mortgage could leave you mortgage free six years sooner and save you over $113,000 in interest. Interested? Talk to us we’ll show you how!
Continue to pay the same amount against your home loan and pay it off way sooner (see the following graph).
As an example let’s say you have a mortgage of $500,000 and other personal loans and or credit card debt of $25,000, this is really not an uncommon scenario. Your mortgage is over 30 years and you are paying $2,742 per month while the additional debt of $25,000 is costing you $750 per month. Total debt repayments of $3,492 per month.
Scenario A) If you consolidate the $25,000 with your existing mortgage of $500,000 your repayments would be $2,880 per month saving you $612 per month! (or)
Scenario B) If you consolidate the $25,000 with your existing mortgage of $500,000 and keep your repayments the same ie $3,492 you will pay off the mortgage in 20 years and save over $187,000!
*these figures are based on a 30 year term and a 2 year fixed rate of 5.19%
And here is a Plan B for you
With today’s high cost of living it can feel good to splurge from time to time on indulgences however what you might not realise is just how much that money could save if you were to put it towards your mortgage. Here is an example that shows you just how one coffee for you and your partner each day could save you up to $85,000 in interest and take 4 years off your mortgage!
Also we thought you might be interested in the article below that shows how other small changes in your lifestyle can have a positive effect on your long term future.
There are two potential costs one is breaking a fixed rate mortgage, if indeed you have one, however sometimes there are no break fees and if there is it’s often prudent to pay these and refinance anyway, there will also be legal costs but in mostly all cases these will be met by the new bank.
There are many and varied savings to be gained in refinancing a home loan, the first and most obvious is a lower interest rate but the other major ways to save are in the consolidation of other debt and in paying your mortgage off faster.
As we have said many times before you don’t know whether you have got the best deal from a bank but we do because we are dealing with hundreds of home loans from much more than just one bank.
There is no stress in changing home loans both ourselves and the bank will make the process a very simple one.