With interest rates at an all time low it is a good time to look at refinancing your investment loans.
What is your current interest rate? The reality is that many people are able to clip a whole 1% off what they are currently paying in interest. To bring this into perspective; on $500,000 of borrowings this is a significant saving of $5000 per year.
The implications of this go further than just one year of savings though;
- In the previous example, if $250,000 of the total borrowings was on your own home, this extra $5000 per year would pay it off 12 years early (assuming a 30 year loan.)
(saving a total of $144,000 in interest!)
- Alternatively, the cash flow freed up may allow you to afford another investment property, helping you reach your retirement goals sooner or exceed them.
For those looking for the added security of fixing their loans, you can presently fix for 5 years at under 5%.
PIE are always looking at ways to ‘make your money work harder for you’.
We suspect that many of our clients are missing out on this and other potential cash flow advantages.
Call or email us today and ask us how?Back