Let me tell you the story...
Here Is Scott's Story
Scott phoned to ask for help reviewing his home loan. He has a home loan with ANZ mortgage of approx. $350,000 with about 26-years to run at this stage and is paying $492 per week in repayments. His loan has just come off fixed and he is paying 5.69% at the moment.We looked at what ANZ was offering. ANZ are offering 4.39% for 1-year fixed and 4.79% for 2-year fixed which if we split the mortgage into two equal loans of $175,000 each is an average home loan interest rate of 4.59% which is not too bad. If we applied those rates to your mortgage and paid $500 weekly then this would reduce the loan term to about 21-years.
The minimum weekly repayment at 5.59% would be $445 per week so that means effectively you are paying an extra $55 weekly.
It's Best To Pay More On Your Mortgage...
If you added another $100 per week to the repayments then you make some significant gains and would pay the mortgage off in about 16-years. More importantly by paying the mortgage off faster it means that you will save over $100,000 in interest which would otherwise be paid to the bank. Lets look at this in a graph - it has more impact.What Does This Mean To Scott
Of course a saving of $100,000 is not insignificant, but what this saving really means to Scot is he could buy a new Vespa Sprint - well in actual fact he could buy 10 of them!Okay, he would probably not buy that many and I'm sure he could find other uses for his savings. Contact an Auckland mortgage broker from the team at Mortgage Supply Company today.
