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Cut your mortgage repayments in half |
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Friday, 01 February 2008 |
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Thanks to Better Mortgage Management you can now reduce your mortgage repayments by half using one of their cash flow loans. A cash flow loan allows you to make interest only repayments as low as 4.15% while you capitalise the remaining portion of interest.
With a cash flow loan you pay interest only for the first 5 years. During this time you will make a partial repayment while the remaining portion of interest is capitalised into the loan. Year by year the portion being capitalised decreases until at the end of the 5th year when your loan reverts to a standard variable principle and interest term loan. Below is a break down of interest paid throughout the first 5 years with a fully verified, variable rate cash flow loan. A cash flow loan can significantly reduce your minimum monthly loan repayments. As an example if you had a $250,000 mortgage during the first year of your cash flow loan you would be making monthly repayments of approximately $864. This can be quite helpful in the first few years of your loan but remember that you are paying less into your mortgage because part of the interest is being capitalised. This means that it is being added onto your loan and your balance is increasing. So while you are paying less in repayments your loans balance will slowly increase over the first 5 years of the loan. Enquire online for more information on cash flow loans.
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