often come into the Tamworth branch of Yellow Brick Road to review and improve
their financial situation. We’re always looking for way to save the residents of Tamworth and
New England money, but one place where people forget to look also
happens to be their biggest household expense: their mortgage. And I believe
the reason why people don’t look closer at their home loan is because the idea
of refinancing seems too difficult, too confusing, or is perceived as probably
not worth it for the effort. If you’re one of those people, it’s time to ask
yourself some questions.
mortgage interest rate? In my experience,
many people know what their monthly payments are, but they don’t actually know
their interest rate. Do you? Take a look – if it starts with a “4”, you can
probably do better and I’d advise shopping around.
What does the
market say? At Yellow Brick Road Tamworth
we have access to a huge range of mortgages and can easily compare t them. The
current market for variable rate mortgages runs from high three percent to over
six percent. Three-year fixed rate mortgages range from the low fours to well
over six per cent. There’s a lot of difference, which means there’s solid scope
What could I
save? Use the comparison sites to calculate several results. If
you have a $350,000, 30-year loan with an interest rate of 5.24 per cent, and
you refinanced to a rate of 4.74, you would save $107 a month and $38,480 over
the life of the loan. As a
mortgage broker, we can easily calculate the savings for your situation.
What must I have?
Have a good repayment record with your current lender and ensure you are not
currently in arrears. Also, know that if you’re half-way through a fixed-rate
loan you may be charged a break fee to leave, but
don’t worry we will factor this into the decision for you.
What are my other
costs? A new lender will likely charge upfront fees, and
there may be some costs to exit your mortgage. As a mortgage
broker, we don’t charge for the services we provide as we are paid by the
lenders for setting up a new home loan.
Who do I see? Go
to your Yellow Brick Road mortgage broker directly as we have access to a whole
panel of lenders and can compare hundreds of loans in the one place.
Mortgage brokers are refinancing experts
who know how to streamline the process.
How long will it
take? Your mortgage Broker will give you a run-down of the
process, the application, the documents they want you to provide, and the time
it typically takes.
Is it worth it?
At Yellow Brick Road Tamworth, my team is here to crunch
the numbers and tell you how much you can save. Often, the answer is yes.