Refinancing your mortgage will often make sense but it is also one of those decisions that should not be taken lightly.
Get this right and you could save literally thousands of dollars, but the implications of getting it wrong have the opposite effect – it can lock you into an unsuitable mortgage set up and end up costing you more or just not saving you anything.
As mortgage advisers we try to establish an idea of what is needed both now and in the medium to long term as it is better to get the correct lending in place that allows for potential changes while you can, rather than be put in a situation where finance is not
available when you need it.
Get Your Copy Today
In this e-book you will hear why you should look at refinancing today.
Refinancing Your Mortgage
I recently reviewed a home loan for some family friends who were 1-year into a 30-year mortgage of approx $560,000 and which was costing $1,545 a fortnight. They therefore had another 29-years on their home loan to go before they could really say they own their home and they were questioning what they could do to pay the loans off faster as it seemed to have hardly reduced in the first year.
I suggested that we should consolidate the short-term debt into the mortgage to reduce the interest costs. We could have consolidated these loans and had them paid off over the same 29-year term and the fortnightly cost reduces from the $475 they are paying now to $65 per fortnight but paying the same loan repayments of $475 on their mortgage.
When we discussed their finances I found that they also had two other debts; a loan of $14,688 with Avanti Finance which is costing them $593 per month at an interest rate of 19.95% and a personal loan with GE Money at 29.95% which they are paying $100 per week on. These types of loans are expensive but like many people they had not really considered the actual cost.
By consolidating the short term debt and keeping the repayments the same they are able to pay the mortgage off in 18-years instead of the 29-years they have remaining.
Talk To The Experts
The team at The Mortgage Supply Company are experienced at all aspects of mortgages and finance.
This of course includes refinancing your mortgage should that be the best thing for you.
