Looking to refinance.

Hey guys,
I'm looking to refinance my current homeloan as i reckon I'm now paying too much. i'm with homeloans.com.au but i think i could get a better deal, they put up my payments an extra 35 a fortnight as a guy with a young family thats big bucks. my rate is 3.89 is there anything better or anywhere that could lower my payments down? my wife and i also are considering extending house (just in talks)

any help or PM would be greatly appreciated.
sauber.

 

rate hasn't gone up just the payments cause i borrowed more i can't remember tbh. and the payments were calculated the higher loan when refinanced (pretty sure)

 

My payments were 674 a fortnight now 703. Just seems its way too much!!!

 

on a rate of 3.89 and thinking the repayments are too high
from having to pay $17.50 per week more - because you borrowed more money.
and thinking of doing a renovation, which will need more money, and therefore even higher repayments.
this whole thread is just amazing to me. my mind is blown.

 

Well for the Amount I have I reckon my payments are too high. 703 a f/n on 290k doesn't hat seem a bit high??

 

Sounds to me as though you might have a loan term of 25years, but you are envious of people with loan terms of 30yrs.

For a small loan on a ppor, even with a family, you should be aiming to pay it off faster than that.

Your rate isn't bad. Yes you could chase a better rate. But not much better.

 

Ask yourself what the cost of a new lender is going to cost you for your perceived "way too high" payments.
Say you can get a rate that is 3.80 how much will that save you per month? Whatever the figure divide by about $1,000 and that's going to be your refinance costs.
What's the ROI?

 

Why let numbers get in the way of enjoying the battler outrage at the evil banks?

 

Compared to what you think you should be paying since your a young family? Or compared to what the evil banks deserve? You dont even know whether you might have increased the loan.

 

Based on a calculator, it looks like you're paying half monthly payments every fortnight.
Equates to exactly $703/FN.

Call your bank and ask? Might be able to switch it to actual fortnightly which will be ~$650/fn

 

I'll have to check what loanterm it is I'm pretty sure its 30. If its25 I'd be pretty happy

 

Why? Your payments would be even higher.

 

just spoke to nab, they said my payments would be 58 dollars a f/n better with them then on the loan I'm on now, but its fixed and the rate would be the same....is it worth changing you think or not?

 

How can the repayments be lower if the rate is the same?
Also do you mean your current 3.89 is variable rate? If so, maybe your current bank can offer you something better for fixed?

By the way, the risk with fixing is that if you need to break the fixed loan to refinance, you need to pay a "break" fee, which can be very small or quite large (each circumstance is different). If you have no need to break the loan for the duration of the fixed loan, then fixing is not a problem. Make sure you understand clearly all the reasons you would need to break before fixing to make sure you will not need to break. A broker can explain this better than me.