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  1. #51
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    Default Re: Home loan payments - sorry, but do you think this is right??

    Quote Originally Posted by Torrie77 View Post
    Regarding interest. Your loan repayments are principal ( amount you owe) and interest. Each month you pay interest and principal. Interest is a large portion on payment and a small amount of principal is paid off. So in our case in 6 years we have paid off 20k in principal and 86k interest ( ekkkk scary seeing that figure for me as I just worked it out). So in this time we have paid 106 k in payments but only reduced loan by 20 k.

    i really hope that made sense in my tired state.
    Actually, not all home loan repayments cover both principal and interest - you can get it set up to be "interest only" repayments which take longer to pay off (so paying more interest in the long run) but is a smaller repayment - they do this a lot for 1st homebuyers.

    If you've had the mortgage for 8 years I would seriously be talking to the bank you do your everyday banking with about what deal they can offer to take on your home loan. Many will offer discounted % rates and other perks - plus you tend to get better service if you deal with them for more than one thing and so much less hassle if you need to sort out a financial issue.

    ALWAYS take down the date, time and details of the customer service officer when you make a phone call to a bank, tele co or any other organization. Get their full name and reference number - this way you have valid information if you have been misinformed, e.g. "i spoke with john smith on Monday 31st of December @ 10am and he informed me...." is taken a lot more seriously than "someone there told me....".

    You are entitled to hold a company to what is said by an employee in an official capacity, i.e. when you call a customer service line. Don't be afraid to ask to speak to a supervisor if someone gives you different info than what you were told the 1st time. Even if what was initially said was incorrect, most organizations policy is to come to some agreement between what information was given to you and what is actually correct.

    Remember that all these calls are recorded and staff are trained and mostly following scripting - so if one of them stuffs up, the onus is on the company to rectify it, not you. If you can tell them time, date and person involved, they can assess that particular call and provide the staff with retraining so they don't continue to provide incorrect information - this is what is meant by "your call may be used for training purposes".

  2. #52
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    Yes Arlais you are correct I just assumed from her posts though that she had an interest + principal loan. We did have interest only when we were building.

    And OP as Arlias mentioned have a talk to bank and have a look what other banks can offer. You could be surprised what your bank can do for you and what is around

    Ok just read reply.
    PICK would go talk to a broker . They can tell you what is best for you and they deal with the banks.

    We refinanced a few years ago. Broker did everything. All we did was sign papers. We ended up paying less than $100 in fees with switching banks and a lot less hassles than the original loan. Brokers cost nothing.

    actually looked at buying again recently and got broker. Had all the approvals in place but decided against it.
    At least broker knows what is around and details.

    and no I believe you only have to pay the $1500 minimum and the bank is just confusing you ( they are pretty good at that , hate talking to them)
    Last edited by Torrie77; 31-12-2012 at 14:44.

  3. #53
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    Thank everyone for taking the time to give me your advice and explaining things to me alot more detail than the bank could.

    I think it all boils down to the bank explaining too much about the interest and nothing about the actual situation at hand and quite possibily i have got more confused than i was in the beginning. I just dont know how it went from "checking the redraw balance to pay for my monthly repayment" TO "having to pay extra payments to cover interest payments".

    Anyway i think it's all sorted and i can stop bothering the bank...


 

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