Investment Refinance - Property Owners Can (and should) Reap Huge Benefits
Investment Refinance - the facts!
Lets face it. Any property secured by a mortgage over time is an investment that needs fine tuning regularly. In fact its critical to overhaul or reassess your total financial position regularly. Particularly if your personal circumstances or available loan choices in the market have changed since owning your current finance.
Are you worried that you're paying too much interest or that you'll need money for school fees, a new car, holiday or are your wanting to invest in another property?
Then it's now time to look at investment refinancing. You could refinance your existing loan with another loan for the same amount, but with a lower interest rate, you could perhaps switch to a profession rate or amalgamate several loans into one.
What ever your need, a health check of your finances can lead to significantly greater benefits for you. Remember a broker can do this for you absolutly free.
Let's look at an example where investment refinancing to consolidate all of your debts can translate into substancial savings for you.
The truth is that it can really save you a lot of money. Investment refinancing can save you more than enough money to reinvest into more property.
Let me show you an a typical investment refinance example that can be extrememly profitable for you.
Let's have a look at an 'A' typicle couple with the following financial circumstances:
* Two credit cards with 5k a piece on them leaving an outstanding balance of $10.000 at 18% -min payment -$500/mth
*Two Car Loans, one for 15k and another for 5k = $20.000 at 11% -min payment -$434.85/mth
*A combined Personal Loan of $15,000 at 11% -min payment -$326.14/mth
*A home loan of $150,000 at 7.25% with a min payment -$1023.26/mth
This sees a financial comitment every month of $2,284.25
However, assuming that your home has now increased in value since you bought it, lets take the opportunity to now look at a simple investment refinance situation that consolidates all these debts into your home loan which has the lowest interest rate 7.25%.
That would mean that your two credit cards of $10,000 plus $20,000 for both car loans, plus $15,000 for the personal loans would be added to your existing home loan of $150,000 to have a new balance of $195,000 at 7.25%
This would attract a new monthly payment of just $1330.24/mth.
You would immediately save more than $954/mth! Thats $221/ week extra in your pocket to now use constructively for investment or reinvestment.
If you added that money of $221/wkly straight back into your home loan, you would now pay off it off in 10 years instead of 30 years!
How much interest would you save?
A staggering $204,367.00
This is not a joke, it's easy to do when you take proactive steps to taking control of your finances today. There really are just so many options available for
real estate investment financing
to get the exact type of loan and benefits that you want to be able to do what ever you want.
However in this example, what if you invested that $221/wkly or at least part of it into an investment property?
Let's use $150 of it which should easily support a $350,000
investment property loan
(this can be dependant on your taxable income).
Now using realistic statistical averages of property growth of say 7.5% growth.
Your accumulation of wealth 'value' would now increase at more than $26,000.00 per year compounding!
Ahhh don't faint and drop to floor... Investment Refinance can pay and pay very well. And the silly part for many people is that they are sitting on this opportunity right now.
Obviously everyone's financial figures won't mirror the ones that I have used here, but you should get the gist of what investment refinance can do for you.
Many people go from thinking, 'I cannot save a single cent or that I cannot possibly afford to pay down any more on my house or get ahead by investing,' to all of a sudden 'WoW'! Now I see the light.
A simple decision to look at how investment refinance can better organise and use the money that I already control, or perhaps better put, 'controls me' has paid staggering dividends and turn my life and that of my family around.
I sincerely hope that you are one of these people.
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