10 Years ago, I met a most delightful woman when I provided her a Seniors Loan, otherwise called a Reverse Mortgage. She had the most adorable timber cottage that matched her bubbly personality and which she had designed herself. The cottage nestled into the vegetation and a floral trimmed timber deck and sunny sitting room overlooked a lush and fern filled gully. She had the whole house filled with quaint souvenirs from all over the world which were a tribute to her travels, and she had no desire to ever leave her beautiful haven and the wonderful garden she had created. She wanted to take some of the equity from her home to add to her lifestyle and travels.
Recently she called me again as the 10-year loan term had passed and she now needed to renew her loan. She wanted to take out additional equity and do more traveling. The value of the home had increased and she was now 10 years older so her circumstances now qualified her to take a new Reverse Mortgage, a better loan with a specialist Seniors Loan provider at a lower interest rate and with no ongoing fees, and this new loan provided her with her updated needs.
Reason number one for refinancing is to bring your loans into line with your current position and current needs.
This week I met a lovely couple who have downsized into a peaceful modern garden complex. Like so many, they had found it harder and harder to keep up with paying the daily expenses on the pension. They had a Reverse Mortgage with a major bank and high interest credit cards with increasing balances. Refinancing their Reverse Mortgage with a specialist lender at a lower rate and no ongoing fees, as well as incorporating the credit card debt into the Reverse Mortgage, will save several thousand dollars in interest and fees in the first year – and ongoing every year. They will now be free of increasing credit card repayments and have enough savings to take a holiday, or renovate, or fulfil some wish from the bucket list.
The second reason to refinance is to consolidate debt, and make repayments easier, reduce interest and fees, and save considerable money.
It really is worth the effort of having your loans assessed by a qualified finance and mortgage broker who has access to a large spectrum of loans. Many brokers will provide this service at no charge and will be able to suggest better opportunities to save money if you refinance to a better loan.
For more information about an assessment of your loans, contact Sandra Dignam from Every Loan who will be happy to clarify your options in specific detail.