15 Oct If You Haven’t Refinanced Your Home and Investment Loans Lately, You’re Probably Paying Too Much.
Borrowers don’t want to overpay for their home or investment loans, but six out of 10 borrowers don’t even know their current interest rate. (CUA) And this ignorance could be costing borrowers thousands per year!
Check out this graph below by https://tradingeconomics.com/australia/interest-rate. It shows the RBA Cash Rate since 2008. As the cash rate has been coming down from 7% to 1.75%, so too home loan interest rates have come down correspondingly. (Albeit home loan rates are higher than the RBA cash rate!)
For example, by refinancing your home loan under these new rate conditions, even a small half a percent decrease in interest rates on a $500k loan from 4.5% to 4% would drop your monthly repayments from $2779 per month to $2639 per month, saving you $140 per month or $1680 per year (or $42,000 over the life of the loan)! Better still, if you keep repayments the same as before, with the new lower interest rate, you could own your home 2 years and 1 months’ sooner!
Call Mollie at The Loan House 0755261855 if you want a second opinion on whether it is worthwhile refinancing your home or investment loan. It could save you thousands of dollars…….