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As of yesterday, we're FINALLY out of our 3 year fixed rate of 8.95% on our mortgage! I can't begin to say what a relief it is! The loan automatically switched to the variable which was at 7.8% and a saving of $56 a week. Beautiful! And seeing as though we've "packaged" our loans, we get a discount of .7%, taking the interest rate down to 7.1%, Total saving of $87 a week from what we've been paying the last 3 years!
We are re fixing the main loan (we have 2 mortgages, one which is the actual house loan and a smaller one which is a consolidated loan, we couldn't put them together without paying the hefty exit fees/break costs) and keeping the smaller one variable, so when we want to extend, we can without paying the break costs on the fixed rate. The fixed rate will be at 6.99% for two years :) If I remember correctly, we will be saving another $5-8 a week.
We've decided we will allocate all the money we are saving, straight onto the car loan. We're used to paying such a high amount on our mortgage every week, and seeing as though the car loan is the killer (more than $150/wk) we're aiming to pay that off by 30th June 2012.
Here is our plan:
- All moneys saved from the lowered interest rate will be put straight onto the car. I'll set up an automatic transfer so I cannot ''forget''
- Living within our means so we'll be living off hubbys wage and all social security, tax, overtime etc will go straight on the loan.
- Baby Bonus - Car loan
We've worked it all out, it's definitely doable within that time frame, its a matter of self discipline and motivation to see if we can follow through.
I would love one of those money/debt progress bars to put on my blog so we can all see how we're going with our goal. I've seen them on a few blogs but can't remember which blogs and/or where to get them from, so if anyone knows, could you please comment and let me know, many thanks :)
What are your plans/goals for the New Financial Year? I would love to hear about them :)
Sounds like you have an excellent plan. I have not set my definite plans as yet. I am still waiting on afew things before I can.
ReplyDeleteMust be such a relief to be out of your fixed mortgage, especially at that rate! :)
I wanted to email you too, but I couldn't find it. Could you please email me? thx
Lower interest would be such a relief. 8.95%! Wow, and I've been complaining that our (variable) rate is high.
ReplyDeleteThanks for ur comments :) It is such a relief!! It was so depressing when the rates dropped right down through the GFC, and friends and family were paying 4-5%, but we got through by thinking at least if they were to sky rocket again, we'd be used to paying such a high amount... As much as we hope they don't sky rocket :)
ReplyDeletegreat plan you have!!
ReplyDeleteonce we get money back from a dental insurance claim, we are going to use it as our emergency fund, then after that we are going to use half of my baby bonus to start paying off my visa. hoping that will it'll be paid off in 1 year.