Talking interest rates - 7 reasons why your mortgage sucks!
Did you know most people (up to 85%) don't know their interest rate? And yet, with your mortgage likely taking up at least one-quarter of your monthly income even the smallest change in your rate could make a huge difference to how much income you have left over for the fun stuff in life.
For example, for every $100,000 you borrow, even a 0.1% discount will save you roughly $100 per annum in interest. Maybe that doesn’t sound like much, but let’s take a look at the maths.
Let’s say you have a $800,000 loan with a repayment term of 30 years. And let’s say you can save 0.5% on your interest rate, going from 5% to 4.5%... that means you would save $86,792 over the life of your loan.
What could you do with $86,792 back in your pocket over the course of your loan? That’s family holidays, a new car, helping the kids out, maybe putting in that pool you’ve dreamed of. And it’s definitely enough to take the pressure down.
Talk to a qualified mortgage broker about your options to refinance or negotiate your loan terms. They can often help you find the most cost-effective option suited to your lifestyle and goals!