Our mortgage brokers have been helping homeowners from Baldivis, Kwinana and other suburbs in the Rockingham area save thousands of dollars by refinancing their home loans. While we can’t guarantee that everyone will profit from refinancing, we will be happy to take a look at your current home loan and see if the terms and interest rate, along with your current credit profile, would be a great candidate for refinancing.
It’s no secret that the RBA rate is currently a record low 2.0%. It’s also no secret that many lenders are passing the rate drops on to borrowers, as intended. You may have bought a home in the last few years, for example, while Baldivis was THE “hot suburb” in the Perth market. If you bought before July 2011, you may be able to find significant savings.
Recently, the Moneyhound column on Yahoo Finance used an example of how much money a homeowner could save refinancing a $300,000 home loan at 4.0% from an original interest rate of 5.0% over a period of thirty years.
According to the piece, exit costs for such a loan would be approximately $1,500. Entry costs for the new loan would be approximately $700, for a total of $2,200. Monthly repayments for a $300,000 loan at 5% are $1,610 with a total of $279,676 in interest paid over the life of the loan. If the loan is financed at 4%, payments are $1,432 per month.
This means you save $179 per month and $64,067 over a 30 year term. In addition, if you take the $179 per month and use it to make extra payments, you can save as much as $46,312 over the 30 years, for a total of $110,379 saved.
Call Smartline Rockingham Today
There is a small flaw in their reasoning; your current loan won’t have 30 years left to pay. But the savings of $179 per month is solid math. To find out exactly how much you can save by refinancing, call the expert mortgage brokers at Smartline Rockingham today: (08) 9527 1800.