It’s a fact, we all work very hard for our money so wouldn’t you be interested to know if you were losing a cool $50,000 over the term of your loan just by not checking your mortgage interest rate?
Is Not Knowing Your Interest Rate Costing You Thousands?
It’s a fact, we all work very hard for our money so wouldn’t you be interested to know if you were losing a cool $50,000 over the term of your loan just by not checking your mortgage interest rate? Don’t feel bad if you don’t know what your rate is off the top of your head, because the facts are, most people I speak to have no clue what their current mortgage rate is. We are all guilty of it. We take out a home loan that suits us at that time and then we tend to just let it work away in the background while we get on with all the other things in life that take up our time. The reserve bank rates change and lenders also change their rates and the next thing you know it could be 3 years down the track and you have no clue what your rate is right now. But not knowing what your current rate is could be costing your thousands.
The facts are, it only takes you minutes to grab your latest statement and check what interest rate you are on, and that could save you thousands
Let’s look at an example of how a rate of say 7.38% compares to a rate of 6.34% (a 1.04% difference) and a remaining loan term of 27 years.
| Interest Rate | 7.38% | 6.34% |
| Loan Amount | $250,000 | $250,000 |
| Term | 27 | 27 |
| Total Repayments over the term assuming standard P&I payments are made | $577,348 | $522,755 |
| Difference over term of loan |
$54,593 |
|
So ask yourself this question; Is it worth putting a reminder in my phone for tonight to check my loan statement and find out what my interest rate is?
If the answers yes and you’d like to work out just how much you could possibly save, feel free to click on the link below and you’ll be able to put your own information directly into this free, complete loan comparison calculator.
And of course if you find that switching interest rates could mean a great saving to your wallet, give us a call, send us an enquiry or complete a home loan health check and one of our consultants can get in touch to give you some more advice.
Happy Saving!
Current as at 6th March 2012
