How much could you save on your home loan?
- Saving thousands over the life of your loan with a better interest rate.
- Cash out from your home for a holiday or home renovation.
- Accessing equity for a deposit on a new investment property.
Here are two examples of how re-financing can work to your advantage.
Re-finance to save thousands
A couple with no kids. He earns $85k, she earns $58k. Household expenses of $2,400pm with a $5k credit card limit. Their home is valued at $710k.
This couple's current mortgage is $490k at 4.63% with repayments of $2,521 pm.
Use the current low rates environment to re-finance the existing loan amount of $490k at 3.71% with repayments of $2,258 pm.
Save $263 pm or $94,680 over the life of the loan!
Re-finance using equity to purchase an investment property
The same couple with no kids.
Re-finance the existing loan amount of $490k plus release $75k in home equity to purchase a new investment property. Total new loan amount of $565k at 3.81% with repayments of $2,639 pm.
Use the $75k of released equity to purchase an investment property for $400k. The new property loan amount less the equity release, deposit and costs is $320k at 4.31% with repayments of $1,588 pm.
With rent received from tenants in the new property plus the savings in the original home loan your financial committments are the same as if you hadn't re-fiananced, yet you now own two properties!
At Mortgage Choice we do all the legwork and our expert advice comes at no cost to you.
So what are you waiting for? Contact me on 0491 140 816 for your no obligation FREE Home Loan Health Check today!
