Yellow Brick Road North Sydney we are always looking for ways to save you money,
and one place we know is your mortgage. People often forget to
look at their mortgage and so it ends up being one of their biggest household
expenses. Why? Well, I believe the reason why people don’t
look closer at their home loan is because the idea of refinancing seems too
difficult, too confusing, or is perceived as probably not worth it for the
effort. If you’re one of those people, it’s time to ask yourself some questions.
What’s my rate?
In my experience, many people know what their monthly payments are, but they
don’t actually know their interest rate. Do you? Take a look – if it starts
with a “5”, you can probably do better and I’d advise speaking to
one of our mortgage brokers to help you shop around.
What does the
market say? Use a comparison site and find out
what’s on offer. The current market for variable rate mortgages runs from high 3%
to over 6%. Most 3-year fixed rate mortgages range from 4%
to 6%, which is a substantial difference and therefore a potential for
What could I
save? Use comparison sites to calculate several results. If
you have a $350,000, 30-year loan with an interest rate of 5.24%, and you
refinanced to a rate of 4.74%, you would save $107 a month and $38,480 over the
life of the loan. Don’t
have time to calculate this yourself? Well, there’s no need to because our
experienced mortgage brokers at Yellow Brick Road North Sydney are more than
happy to help you out!
What must I have?
Have a good repayment record with your current lender and ensure you are not
currently in arrears. Also, know that if you’re half-way through a fixed-rate
loan you may be charged a break fee to leave. So, make sure it’s worth it.
What are my other
costs? A new lender will likely charge upfront fees, and
there may be some costs to exit your mortgage. Also, if you have less than 20
per cent equity in your new loan, you’ll pay lenders mortgage insurance, which
increases your costs.
Who do I see? Make
an appointment with one of your Yellow Brick Road mortgage brokers. At Yellow
Brick Road North Sydney we have a wealth of industry knowledge as well as
access to a whole panel of lenders and products, so we have the skills are
resources to get you the best deal possible.
How long will it
take? We will give you a run-down of the process, the
application, the documents they want you to provide, and the time it typically
takes. We know your time is important
so we try to make the process as quick and easy as possible.
Is it worth it?
You must answer this yourself. The total interest paid on a $300,000, 30-year
mortgage at 5.6% is around $66,000 more than the same mortgage at 4.6%. You
have to decide it this is worth the effort of refinancing.
If you still have more questions regarding how you
can save on your home loan, then make sure you either drop by our North Sydney
branch or give one of our friendly mortgage brokers a call.