I was referred to a couple that had been in their current home loan for nearly 10 years. It wasn’t working for them any longer. The rate was higher than was able to be achieved in the marketplace today (approx. 1.5% higher) and there were more fees than was necessary for them to be paying for.
They were struggling with credit card debt of nearly $30K, a car loan of $11,500 and desperately needed to update their bathroom which they wanted extra funds for.
Their total monthly outgoings were just under $4K pm.
After I refinanced their mortgage to a lower rate with less fees, consolidating the credit cards and car loan and borrowing for the renovation, we were able to save them a staggering $1556.60 pm OR $18679.20 per annum.
The new loan cost them $1920 pm but included the home loan, car loan, credit cards and funds for renovation. An extra $48K for a monthly figure of $335 less than what they were paying for the original home loan alone.
This took an immense amount of strain off their marriage and the extra funds they had available they deposited directly back into the home loan to reduce the mortgage as quickly as possible, knowing that if they had an emergency they were able to redraw those extra payments if needed and weren’t wasting them on paying high interest fees on credit cards etc.
If you’re striving to be mortgage free, there’s a good chance there may be a more appropriate product to meet your needs. Some mortgage products are designed to motivate borrowers to repay their mortgages quickly, so now is the perfect time to talk to a mortgage broker and consider whether a new loan will see you on the road to financial freedom – fast!