Save big bucks on your home loan
By MIKARLA THURECHT
SWAPPING home loans has changed Joy Baker's life.
And it could change yours for an extra $50 a week.
Mrs Baker is just one Rock-hampton resident who has taken advantage of a "new school'' mortgage and slashed her debts.
Rockhampton financial adviser Derek Doolan, who advised Mrs Baker, said people could slash more than 13 years and almost $70,000 in bank interest off a standard $100,000, 25-year mortgage if they swapped to a better loan.
He said the dramatic cuts were possible for just an extra $50 a week.
Mr Doolan said now was an ideal time to look at refinancing because banks were competing for business and rates were low.
He said banks rarely provided advice about such loans because it was not in their interests ? pardon the pun.
Mr Doolan said most people were signed up to old-fashioned loans, which didn't make their money work for them.
He said while low-interest rates were important, it was more about flexibility.
Mr Doolan said while refinancing wasn't for everyone, it worked well for the dedicated.
Mrs Baker, a mother of two whose husband recently died, refinanced her loan almost 10 years ago and hasn't looked back.
The fleet car consultant said life had been easier since she refinanced.
"I haven't got this debt hanging over my head any more. The beauty is I've got this line of credit now.
"If I want to buy a new car, provided I've still got the equity, I can just write out a cheque. No other loans. It's so simple.''
Mr Doolan said the secret to the equity loan's success was all your money came directly off your loan and acted like extra payments.
"If your goal is to get out of debt, this loan is for you. "It's a wonderful concept for people who are disciplined with money.''
Mrs Baker advises those who can budget to seek help and swap loans.
"Don't just hang in there. See a financial adviser. I love my new loan.'' she said.
"Every cent is working on my bank account so I've got maximum money in there and less interest, which reduces my loan.''
Contact your financial adviser before deciding to change home loans.