How to save hundreds on your mortgage repayments
Investor saves $500 a month in interest repayments and keeps her dream alive.
When single mum Mary Norman* came to us a few weeks ago she was hurting. Her life long dream of building a property portfolio had turned sour.
The repayments on her first investment – a three bedroom rental property in inner Brisbane – had rocketed from 7.6% to 10.67% in eighteen months.
She feared she would be forced to sell and that made her sick because she knew the property had enormous potential to grow in value over time.
When Mary bought the property she was seduced by a second tier lender offering a loan with a huge one year interest rate discount. It seemed a great deal at the time, but then the sub-prime meltdown ignited and up went the rates.
Being a second tier lender, its rates went up higher and faster than the majors who are under closer scrutiny.
Eighteen months later Mary was suffering the consequences.
Her cash flow had reduced to a trickle. But, getting out of the loan presented a huge problem. The exit fees.
If she refinanced the loan or sold the property she would have to pay close to $13,000!
Everyday she was beating herself up over what to do. Sell? Refinance? Hold? In her mind whatever she did would result in an enormous sacrifice to her lifestyle and to that of her two kids.
With all the headlines sprouting doom and gloom, she admits becoming paralyzed with fear.
What Mary needed was someone to help her think clearly: Someone with an understanding of lenders and loans who could put things in perspective.
She came to us for a solution and, to cut a long story short we found it. We refinanced the loan to another lender and reduced her repayments by $500 a month!
Yes, she still had to pay those ugly exit fees, but because of her property’s increased value, we added them to the new loan.
Mary will keep her investment and her dream. By changing lenders she will save the equivalent of those fees in just over two years thanks to the lower interest rate we found.
There are two messages from Mary’s story:
1. Sometimes the best interest rate is not the best loan. To get the best loan for your circumstances you need expert advice.
2. The second message is if you are struggling ask for help!
At Finding Finance we can help. Our consultants have access to 30 lenders and hundreds of products. We have the tools and expertise to find the right loans for investors. For more information, please contact Paul Ransley on 1300 729 075.
*We have changed Mary’s name to protect her privacy |
