Many mortgage brokers in the Rockingham, Baldivis and Kwinana areas are recommending that their clients take advantage of the current interest rates to pay extra on their mortgages. Because interest rates are so low, they are “eating up” less of most home loan payments. This provides a great opportunity for homeowners to pay even more on the principal, pay off their loans faster and save money.
According to Smartline internal figures, homeowners who pay $100 a week extra on their mortgages could save as much as $115,000 over the full term of their loans.
However, many loans carry penalties for extra payments that negate the benefits. That means it is essential to check with a mortgage broker to fully understand the terms of your home loan. At Smartline Rockingham, we can take a look at your current loan and analyse whether or not it would be profitable for you to pay extra on it.
It may turn out to be lucrative for you but your loan could have terms that aren’t to your advantage. If so, you may seriously consider refinancing your current home loan.
If you have a loan for $300,000 and your interest rate is 5%, an extra $100 per week would pay your home off 11 years sooner and save you $115,000 in interest. While a loan with a lot of fees would tend to give your savings back to the lender, a loan with no fees for paying extra would give you the savings mentioned above.
What if Fees are Prohibitive?
If your loan has excessive fees, talk to a mortgage broker from Smartline Rockingham. At least one of our 28 different lenders will be happy to refinance your home loan. We can usually provide a quote for a loan that gives you the option of paying extra without any fees.
Call (08) 9527 1800 today for an obligation-free analysis.