Courtney C. Lipsey You’ve probably heard others talk about the benefits of refinancing. Refinancing can save you money by allowing for better loan features, such as reduced repayments or additional repayments. Refinancing is a great way to achieve important goals and take advantage of today’s competitive mortgage market. You can also upgrade your loan to include brand-new features and packages. Do you know the amount you can save by refinancing your loan?
Refinancing may provide you with some extra features, such as flexible repayments, a redraw option, and an offset account. Refinancing is primarily motivated by saving money for most people. I’m sure there are many Australians who don’t even know what their mortgage rate is. The interest rate is the single most important factor when it comes to saving.
Lower your interest rate.
The lowest mortgage rate on the market is 2.09%. A lower rate of interest will lead to a smaller repayment amount. This is a good way to save money. You will see a difference if you increase your weekly, monthly, or fortnightly cash flow. This could save you hundreds of dollars each month.
How Much You Can Save
If you have a loan of $500,000 and the interest rate is currently 4%, then you will be paying principal & interest every month.
Do you know how much money you could save if you secured a new rate of interest of 2.19%?
Savings of $491.12 per year and $176.801 in total interest over the 30-year loan term.
Key Points
One of the best reasons for refinancing is to get a lower rate.
Refinance your mortgage as soon as the interest rates drop to save money and reduce the length of the loan.
Fix your mortgage and take advantage of the lower interest rates.
There are many factors to take into consideration when deciding this nature. You should consult a financial professional like ourselves before refinancing. We will tailor a solution to your situation and ensure that your home loan refinance makes sense.
