Moneymakeover Money Makeover - Loan Consolidation / Refinance
- Thread starter Sean
- Start date
Hi, Sorry for the messed-up tables. Here is a clearer image
My query is around the best option/value to refinance
I'm thinking of refinancing with anPost / Advant Money (same thing?) that will hopefully lower the overall cost of the loan and reduce the monthly outgoings
Separate to the below, I have a 15-year fixed mortgage with Finance Ireland, with monthly repayments of roughly 800. This is a fixed-term at 2.2% or so, and not looking to re-mortgage or do anything that will jeopardize the mortgage
Male, 45, Married with 2 kids, Take Home Pay 5,024
My query is around the best option/value to refinance
I'm thinking of refinancing with anPost / Advant Money (same thing?) that will hopefully lower the overall cost of the loan and reduce the monthly outgoings
Separate to the below, I have a 15-year fixed mortgage with Finance Ireland, with monthly repayments of roughly 800. This is a fixed-term at 2.2% or so, and not looking to re-mortgage or do anything that will jeopardize the mortgage
Male, 45, Married with 2 kids, Take Home Pay 5,024
I wouldn't refinance, though I'd try to move the credit card balance to 0% finance (more hopeful than optimistic). I would look at my spending, identify areas to save, and go all out to pay off the credit card. Beyond that, as interest rates are similar, I'd use the snowball method to target the lowest outstanding debt, then rinse and repeat. To try to make immediate inroads on the CC dept I'd look for a 3 month mortgage holiday, though I'd state that it was to help with the cost of orthodontic work for one of my children, or some such, rather than paying debt.
I think you should provide full details of the o/s mortgage balance, duration left, home value etc.. Whilst it may feel hard to lose the 15 year fixed, I wouldn’t take it off the table.
1. At 800 a month I assume the mortgage is small.
2. 3%ish mortgage rates are readily available these days.
3. You’re paying a blended rate of >10% on €40k of personal loans which is absolutely insane.
I suspect if you run the numbers it would overwhelmingly improve your financial situation to get a remortgage at c.3-3.5% and get all of your debt under that rate.
Your €40k personal loans are costing the equivalent of €150k+ mortgage. I’d guess you’re way over valuing the fixed mortgage (if you provide the o/s balance it can be quickly calculated) while being absolutely decimated by unsecured debt at exhorbitant rates.
Totally agree. That's why I suggested that filling in the full money makeover template would help others to offer useful feedback in the context of a better understanding of the original poster's overall financial/personal circumstances.