For many Inner Westies, owning a family home is only possible with the financial challenge of a large home loan. Did you know the average debt in the Inner West is $423,565 & the average interest rate being paid is 4.67%. This equates to average monthly payments of $2,395.36* which makes up a large proportion of household expenditure.
With interest rates at all-time lows, now might be the time for you to review & refinance your existing home loan.
There are several reasons refinancing may benefit you and your family:
• It could provide equity access for home renovations
• Options for a holiday
• Investment opportunities
Let’s have a look at a case study of the average inner west family.
Monica and her husband bought their first home in Yarraville, they took
out a $500,000 home loan with an interest rate of 4.67%. Their principal
and interest monthly repayments were $2,395.36.
After doing some quick calculations, they discovered that if they switched
their home loan to a new lender with a lower interest rate of 3.65%, their
monthly repayment would be just $2,154.71 which would lead to a saving
of $240.65 per month or approximately $72,195 over the life of a 25-year
Monica and her husband used a mortgage broker who was able to do the
leg work for them, saving time and ensuring they got the best loan rate
and structure for their circumstances.
Is Refinancing right for you?
Whilst saving money is fabulous, there are some factors you need to consider to ensure that refinancing is the right move for you:
There are costs involved in refinancing your home loan, therefore it may not be the best financial move for everyone. These costs may include government charges to switch (to give you an idea, it’s a maximum of $250) and any lender application fees.
A good broker will consider any applicable costs and some of the following:
• Your repayment history or changed financial circumstances
• How high is your loan-to-value ratio (LVR)
• Fixed rate break costs
• Is your loan amount too small (this is a nice problem to have)
• Family Budget
Don't wait, call today and speak to an expert at WE Mortgage Solutions, our mortgage broking partners, for an obligation free consultation and start saving.
Call 1300 13 59 53 or book an appointment online at http://www.wemortgagesolutions.com.au/contact
*Principle & Interest over 25 years