There have been several articles on various media lately about some lenders that are raising their interest rates for a number loan products.
There are several reasons for this but the important thing is, that you, as a customer should not have to pay more for the same loan if you don’t need to.
The cheapest loan isn’t always the best loan but many customers stay with their loan out of convenience, not taking the time or having a mortgage broker find the best loan for you. MyLoanFinder.com.au can have a mortgage broker help you find the best loan available to you, to contact MyLoanFinder.com.au, click here.
A small change in the interest rate on a home loan can mean a lot over a long period of time. Below is a basic example of what repayment amounts would be for two differing loans at different interest rates.
Example 1 – For a home loan amount of $400,000 at an interest rate of 5.5%, the monthly repayment amount would be, $2271 per month. Over a 30 year loan, assuming the same interest rate, the total amount of interest paid would be, $417,616.
Example 2 – For a home loan amount of $400,000 at an interest rate of 4.9%, the monthly repayment amount would be, $2123 per month. Over a 30 year loan, assuming the same interest rate, the total amount of interest paid would be, $364,246.
For the same loan amount and same period of 30 years, between the two interest rates, the Example 1 loan would cost $53,370 more than Example 2.
MyLoanFinder.com.au has a mortgage calculator you can use. If you would like to calculate your own home loan repayment estimate, please go to our mortgage calculator page.
Take the time to have a mortgage broker review your current home loan, contact us via our contact page.
MyLoanFinder.com.au can also help with a number of other loans. A list of the types of loans MyLoanFinder.com.au can assist with can be found here.
If you are interested in speaking with us, please call 1300 221 471 or email email@example.com