How Can I Lower my Mortgage Interest Rate?

If you have a mortgage interest rate that is higher than you would like, don’t be afraid. There are many things you can do to lower your interest rate. Some of these things technically don’t lower your interest rate, but they do decrease the amount of money you pay overtime!

Refinancing

This is a great option for individuals who have a high mortgage interest rate and also have a high credit score. Once you have made enough payments, it may be easier to shop online for a mortgage and refinancing company in Australia with better rates.

There are refinancing and mortgage calculators that can give you a generally accurate estimate of what your new monthly payment would be. The thing about refinancing is that it can lead you to pay a similar amount over a longer period of time. 

For instance, if you have 15 years left on your mortgage, refinancing your mortgage could add another 30 years. This may not be a great option if you are looking to lower the number of years you are paying your mortgage.

Making Higher Monthly Payments

If you do not like the option of refinancing your current mortgage for a lower interest rate, then you can make higher monthly payments. It can significantly lower the number of years you have left if you simply make an additional monthly payment of 100 AUD.

Sometimes, you also have the opportunity to make additional payments throughout the month. For instance, if you get a bonus or a larger paycheck, you can pay extra on a separate payment.

Conclusion

You don’t have to feel stuck with your high mortgage interest rate! There are many things you can do to lower the amount. However, you should always look over your mortgage contract. There are penalties for refinancing or paying off the loan sooner that may not make it worth it.