Are you aware that some lenders offer ’35 year loan terms’? Of course, we always want you to pay off your loan faster and having a ‘longer loan term’ can lead you to pay more interest over the life of the loan. However, as we all know life can throw challenges and in many cases maximising your repayments on your loan isn’t the priority in life all of the time.
We had one such client that needed a little breather on their home loan. This client had done well to pay their home loan down but wanted to minimise their monthly commitment. Stretching the loan term out to 35 years reduced their monthly repayment and gave them some breathing space. The loan did also allow them to make extra repayments when able, hence the clients will still be on track to pay off their loan well before their initial 30 year loan term.
The added benefit of stretching the loan term out to 35 years will allow you to borrow slightly more than you would have on a 30 year loan term.
Would you like to find out more about ’35 year loan terms’? Contact scott@oceanlending.com.au today!