How To Take 6 Years Off Your Mortgage…
…by consolidating debt and still reduce your repayments
A young Wellington couple who refinanced recently were able to save money by combining their credit cards into the home loan. Even though they only moved in three years ago they had run Since moving into the home they had started a family and run up some credit card debt – some of which was incurred when they initially furnished the property after moving in and the majority when they were down to one income with their newborn.
A home loan of $350,000 (repayments of $1929/month on their expiring two year fixed rate of 4.8%) with a full loan term of 27 years to run
$15,000 on credit cards (minimum combined repayments of $350/month and a rate of 19.9% on one card) – making only the minimum repayments would mean it would take until 2025 to repay both cards.
Total monthly repayments of $2215/month.
Their property was worth close to $500,000 so with comfortable equity in the property and the benefit of moving to a much lower fixed rate of 4.10% they were able to set monthly repayments at $2163 and take their loan term down to 21 years.