Thinking about Refinance Your Home Loan
Were increasingly becoming a society dependent on credit plus particular credit cards. This is a direct result of clever marketing campaigns, softening lending policies and the convenience connected with cards.
Our parents all lived in the ‘savings’ based society, where if they didn’t possess the cash they didn’t buy it! Today we have been continually being exposed to direct marketing and simple use of credit. This has resulted in us transforming in to a ‘credit’ based society, where if we don’t have enough cash we just place it on credit and stress about covering it later!
One of my clients Daniel owned a house with a mortgage and looking at in regards to the option of refinancing home loan his home loan, he thought he would contact one of our fully qualified refinancing specialists to discover more about how refinancing his mortgage might be able to help him reduce his monthly repayments and pay less interest on which he owed on his cards.
Daniel was making a repayment every single month of $400 to the credit card companies, with an interest rate on his cards of 16%.
We did some calculations for him and found these:
He would pay $9,484 in interest before his cards were clear.
It might take five years and 9 months to repay the cards if he didn’t make any further purchases with them.
Daniel wanted to reduce his monthly repayments to $300.
By mortgage refinancing his house loan at 7% and consolidating his personal credit card debt in to the new mortgage it changed the figures quite dramatically:
He would pay only $4,153 in interest charges, under half the previous interest charges.
It might take six years and 2 months to repay his credit card debt, slightly longer, however he would have an extra $100 to take each month during the period.
If Daniel had thought we would continue making repayments of $400 then:
He would pay $2,895 in interest and;
It might take him only 4 years and 4 months to repay the debt.
Daily we have been assisting clients like Daniel lower their bank card debt.
Simply because that each situation is unique it’s important you let among our qualified refinancing specialists help assess your situation and in turn provide you with the available options.
Don’t look back on your new path to living debt free, and before long you will be accumulating the wealth which you have always desired.
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