This is one of the recent cases where we helped our client to lower her home loan’s interest rates and save her $17,000 per year. Miss Yang stays in a condo in the East, with an outstanding loan of $1,000,000, with 23 years left in its tenure. Her loan is out of lock-in period and she is currently paying 4.70%. She approached us to see if we can help her lower her monthly installments.
At 4.7% interest rates, she was paying $5,934 for her monthly installments. We got to work and secured a deal for her with another bank, at a much reduced interest of 3.0%. On top of that, the package we got her comes with a cash rebate/incentive that covers the legal fee and valuation fee (for the refinancing). Which means there is no out-of-pocket costs for her.
With 3% interest rates, now her monthly installment now comes up to $5,020.16. A huge $900 difference already. But the savings does not stop here.
While she indeed has a $900 increase to her monthly cash flow, the most important note is that she is paying less interest, and more towards her principal loan, allowing her to pay less on interest in future payments too.
In essence, the savings of the 1.7% reduction didn’t just give her more cash flow, It reduced more of her overall principal sum at the same time. All that compounded to nearly $17,000 of savings in interest over the first year.
Are you in a similar situation? Do you find yourself paying for way higher interest than you were just a few months ago? You should consult our experts for solutions to lower your interest rates. You can get in contact with us via the link below: