Why wouldn't you Refinance Your Home Loan

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Why wouldn't you Refinance Your Home Loan

Posted by sufminriatim 136 days ago (http://mortgagereductionexpert.com.au)

We are increasingly becoming a society dependent on credit plus particular credit cards. This is a direct response to clever marketing campaigns, softening lending policies as well as the convenience related to cards.

Our parents all lived inside a 'savings' based society, where whenever they didn't have the cash they didn't buy it! Nowadays we are continually being exposed to direct marketing and easy use of credit. This has resulted in us transforming right into a 'credit' based society, where if we don't have the cash we just place it on credit and bother about covering it later!

One of my clients Daniel owned a house with a mortgage and after reading in regards to the option of refinancing his home loan, he thought he would contact one of our properly accredited 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 what he owed on his cards.

Daniel was making a repayment each and every month of $400 to the credit card banks, having an interest rate on his credit 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 five years and 9 months to pay off the cards if he didn't make any more purchases with them.

Daniel wished to reduce his monthly repayments to $300.

By refinancing his mortgage at 7% and consolidating his credit card bills into 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 would take 6 years and 2 months to repay his credit card debt, slightly longer, however he would have a bonus of $100 to take on a monthly basis during that point.

If Daniel had decided to continue making repayments of $400 then:

He would pay $2,895 in interest and;

It would take him only 4 years and 4 months to repay the debt.

Every day we're assisting clients like Daniel lower their plastic card debt.

Simply because that each situation is unique it’s important you let among our qualified refinancing specialists help assess your circumstances and in turn provide you with the available options.

Don't look back on your new path to living free from debt, and before very long you'll be accumulating the wealth you have always desired.

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