Save Money & Mortgage Free Sooner
How to re-fix your home loan, be mortgage free earlier and save money.
See how Simple …
A home loan of about $360,000 with monthly repayments of $1,835. This loan has a current interest rate of 4.55% which includes a low equity margin because the deposit was less than 20% initially.
Step 1 – Review the value of the property. Has the value increased or decreased? For our example, the property value had increased.
Step 2 – Request the bank review the value and remove the low equity margin.
The bank is quite obliging and checked the and removed the low equity margin. This is something that is not automatically reviewed by the banks. Either you have a good mortgage adviser who regularly keeps in contact and reviews your current home loan, or you need to annually review your home loan.
Step 3 – With the low interest rate, we re-fix the loan at 2.55% which would mean that the repayments could drop to about $1,432 monthly.
This is where the savings happen, the interest rate has dropped but we recommend keeping the repayments the same to $1832 monthly.
The home loan is on target now to be paid off 6 years earlier and saves over $30,000 on the loan.
Have you checked your mortgage yet?
Savings on your home loan is not the banks priority, in fact the longer you take to pay your home loan the more money the banks make.