Interest Mitigation Strategies | Loan Optimization
According to the Urban Institute, originations for first mortgages totaled $1.8 trillion in 2017. In addition, NADA (National Automobile Dealers Association) reports that in the United States, the nation’s 16,802 franchised dealers sold 17.14 million new vehicles in 2017, and total new-vehicle sales topped $1 trillion. If as in years past, approximately 70% of these new car purchases were financed, total new debt for new passenger car purchases would be approximately $700 billion. With the total value of new debt in these two categories exceeding $2.5 trillion for 2017, and assuming an average interest rate of only 5%, debtors will pay over $125 billion in annual interest carrying charges alone for just their single-year new purchases of homes and automobiles. The enormity of these amounts leads to a simple question:
Is it possible for borrowers to reduce their debt service costs? And if so, how?
The answer to the first question is certainly “yes.” The answer to the second question is…”that