Everyone is talking about how interest rates are at an all time low and at the moment they really are.
What does this mean for you? if you haven’t had your home loan reviewed in some time it could be costing you shoes! (or savings)
Let me put this into context for anyone who is thinking if it’s really worth the effort to see your Broker and compare your loans and refinance for a better rate.
If your home loan is at $400 000.00 and you’re on 4.90% that means you will pay $1633.33 in interest and this will slowly decrease as you pay the principle amount down.
Now you decide just to chat to your Mortgage Broker to see ‘what’s out there’ and they are able to offer you an interest rate at 4.00% (it should be worth mentioning at the moment this is on the high end for Owner Occupied, Principle and interest loans).
Based on this new rate the interest you will be charged is $1333.33 in the first month and so on.
This is a savings of $299 in your pocket rather than the Bank or Lenders just for shopping around and making sure you are getting the best deal and package to suit your needs.
An extra $299 a month could mean keeping your repayments the same and the extra money will repay your loan faster and save you even more or it could mean an extra pair of shoes (or two) each month… what a decision to make.
Please note the calculations used in the above example have not taken into account your current circumstances however if you would like to see if you can take advantage of the record low interest rates in todays market then please contact me for an obligation free chat to see what I can do for you.