Help please! I would really appreciate some advice. I am 60 years of age, I have a mortgage on my home now at $215,000 with repayments of $2093/ month. I have 13 years left on the loan
I am a sole trader and sometimes struggle to meet the repayments.
I have just come into $30,000. My current loan has no ability to have an offset account - unless I re apply, get reassessed etc - which would be tricky with the current financial nature of my business.
The bank has said it will lower my interest rate to 5.2% and I am to put the $30,000 straight into the loan - bringing my loan down to $185,000.
At the 5.2% rate my new repayments would be $1529/ m which is better but some months could still be stressful and business is getting tougher out there and I am definitely getting older.
The bank has suggested that I swap over to interest only repayments which will be $802/m. and I could contribute as much as I am able each month on top of that.
I am not sure about going to just paying interest only?
If I go interest only and make other contributions on top of that will that money really make much dint into the principle?
If I want to extend the length of the loan (to reduce the monthly repayments), I have to re apply etc - once again, a bit tricky.
In reality I have limited ability to ever pay the loan off so I am guessing I need to make as much profit as possible when I sell the house in say 5 - 8 years
Any feedback or thoughts on how to best manage the mortgage would be gratefully received
Any questions, I am happy to add more information
Thank you. G
I am a sole trader and sometimes struggle to meet the repayments.
I have just come into $30,000. My current loan has no ability to have an offset account - unless I re apply, get reassessed etc - which would be tricky with the current financial nature of my business.
The bank has said it will lower my interest rate to 5.2% and I am to put the $30,000 straight into the loan - bringing my loan down to $185,000.
At the 5.2% rate my new repayments would be $1529/ m which is better but some months could still be stressful and business is getting tougher out there and I am definitely getting older.
The bank has suggested that I swap over to interest only repayments which will be $802/m. and I could contribute as much as I am able each month on top of that.
I am not sure about going to just paying interest only?
If I go interest only and make other contributions on top of that will that money really make much dint into the principle?
If I want to extend the length of the loan (to reduce the monthly repayments), I have to re apply etc - once again, a bit tricky.
In reality I have limited ability to ever pay the loan off so I am guessing I need to make as much profit as possible when I sell the house in say 5 - 8 years
Any feedback or thoughts on how to best manage the mortgage would be gratefully received
Any questions, I am happy to add more information
Thank you. G
