Why Should You Refinance Your own home Loan
We are increasingly becoming a society relying on credit and particular bank plastic. It is a direct result of clever marketing campaigns, softening lending policies and the convenience connected with cards.
Our parents all lived in a ‘savings’ based society, where whenever they didn’t hold the cash they didn’t buy it! Nowadays we have been continually being exposed to direct marketing and simple usage of credit. This has led to us transforming into a ‘credit’ based society, where if we don’t have the money we just place it on credit and stress about paying for it later!
Among my clients Daniel owned a house along with a mortgage and reading about the option of mortgage refinancing his home loan, he thought we 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 doing a repayment every 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 the examples below:
He would pay $9,484 in interest before his cards were clear.
It could take 5 years and 9 months to repay the cards if he didn’t make any more purchases with them.
Daniel wanted to reduce his monthly repayments to $300.
By refinancing home loan his house loan at 7% and consolidating his credit card debt to the new mortgage it changed the figures quite dramatically:
He would pay only $4,153 in interest charges, less than half the previous interest charges.
It could take 6 years and 2 months to repay his credit card debt, slightly longer, however he would have a bonus of $100 to shell out every month during that time.
If Daniel had thought we would continue making repayments of $400 then:
He would pay $2,895 in interest and;
It could take him only 4 years and 4 months to repay the debt.
Every single day we have been assisting clients like Daniel lower their credit card debt.
Due to the fact that every 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 very long you’ll be accumulating the wealth that you have always desired.
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