Refinancing to shorten loan term
Joe and Melissa purchased a house several years ago when they had known credit issues. At the time they were forced to borrow the funds required, from a non-conforming lender, at very high interest rates. Their loan term was a long 30 years.
Two years ago, Joe found permanent employment as an emergency services worker, and Melissa was able to increase her permanent part-time employment hours. Their additional incomes have allowed them to repair their credit record and placed them in a position where they could apply to a recognised lender, for a standard loan.
Joe and Melissa called into the office of Oz Lend and advised that they could afford to continue making repayments at the same rate that they had been paying but were hoping to refinance over a shorter time frame, so they fully owned their home at an earlier date.
Oz Lend was able to assist Joe and Melissa to refinance the $380,000 still owing on their old loan that they had obtained from a major lender.
Their new loan was granted at an interest rate which was half the interest rate they were previously paying. This reduced interest rate meant that their new loan would be repaid in only 15 years.
The reduction from the time outstanding on their old loan to a 15-year loan at lower interest rates, will see them save almost $135,000 in repayments they would otherwise had to make.
Joe and Melissa’s decision to drop into the office of Oz Lend certainly paid great dividends for them.