This is a guest post by Melanie, from Aussie.com.au
Refinancing your mortgage
gives you breathing space to raise your family
I’m Melanie Smith. I’m a mum with 2 young children. Yes young 3 and 1.
If your young family is anything like ours, you’re no doubt trying to juggle a work-life balance that gives you as much time as possible with your children. And we all know how stressful it is raising a family on one – or one-and-a-bit – incomes.
That’s what drew me to a career in mortgage brokering – the flexible work hours and an insider’s knowledge about how to optimise our mortgage so that Corey and I have enough in our bank account while we raise our kids. Now I’m helping other families strike the right financial balance for them.
Refinancing your mortgage is a great option if you’re looking to have another baby and you’re worried about making ends meet during maternity leave. By refinancing your existing loan back over a 30 year term you can reduce your minimum monthly repayments, which frees up some much-needed cash flow for day-to-day expenses. It’s a financially responsible solution to a traditionally difficult phase in your life.
Another option is simply to shop around for a better mortgage deal. An interest rate reduction of just 0.5% on a $350,000 home loan can save you around $120 a month in repayments. That’s over $1400 extra dollars in your pocket over one year –approx. $43,000 over the full length of the loan. Keep in mind that the amount of interest you would save would also be around $43,000, giving you a total saving of over $86,000.
If you’re looking for ways to increase your cash flow, or if you’re thinking about upgrading your house to accommodate an expanding family, I’m more than happy to help you find the best mortgage deal for your circumstances.
As an Aussie Mortgage Adviser, I have access to hundreds of home loans from over a dozen lenders. Using Aussie’s exclusive Mortgage Explorer™ software, I can rank loans from Australia’s leading banks and lenders based on your borrowing needs. I’ll even liaise between you and the lender to streamline the paperwork process.
What’s more, my services won’t cost you a thing.
With a background in financial planning and investments, I’m fully accredited by the Mortgage and Finance Association of Australia (MFAA). I hold a Certificate IV in Financial Services (Finance/Mortgage Broking). So you know you’re in safe hands.
Best of all, I can come to you day or night, 7 days a week, at a time and place convenient for you. Phone me on 0411 22 33 01 or email me [email protected].
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About Guest
I’m a working mum who between feeding babies loves helping other families. I can help sort out cash flow, I can assist in getting the best deal possible wether upgrading the house, looking to refinance to reduce repayments or even access some equity in their existing home. I know how much pressure households are under. I want to help out others get it right. And I’m only a phone call away.
Find our guest: Website | Facebook
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5 comments
We struggled to make ends meet when I was on maternity leave as well…these are great tips for mums-to-be! Thanks for sharing.
Happy to share Lisa. Thanks for taking the time to comment.
Hope all is well now. it can be a very hard period. But good news is it isn’t forever.
By increasing your home loan term from 25 years to 30 years you will pay another $82K in principal and interest on a $300K loan at 7%. You should be advising your clients about the potential for increased debt by taking this option.
Thanks for your contribution Robernow,
yes you make a valid point and yes I do talk about the long term implications. However this is a strategy for the short term to help families with the issues of cashflow when they are struggling with a new or growing family.
I would also talk with them about all the option available to them. However for this post it was really just about the options they could consider for this period of time. I know when I first got my babies at home on one income for a short amount of time it was hard to make ends meet and hard to see the wood for the trees no one suggested anything like this for my family. I really wish someone had though because it can be a very difficult time. I’m sure if you have small kids you will agree.
But thanks for reading my post and taking the time to make a comment. Discussion is a good thing.
Hi Melanie,
Yours tips on refinancing are interesting ways to increase cash in tough times while still adapting to the changes in life that we are all trying to deal with.
thanks