|
Living with your home loan
A home loan brings the thrills of home ownership, but it's essential that you can also live comfortably with your loan.
Go to Web Site
|
|
|
|
Try our simple steps to get the most from life and your home loan:
Make extra repayments where possible
Life will be a lot easier if you only borrow what you can comfortably repay – even after allowing for possible rate hikes. If you can manage it, additional repayments will fast track your way to mortgage freedom.
Even small extra payments can have a big impact. On a $250,000 home loan, paying just $50 more each month on a 30 year mortgage loan could trim your total principal and interest repayments by up to $51,379 assuming an interest rate of 8.25%.
A redraw facility on your home loan also lets you tap into these additional repayments – a real plus for those unexpected expenses.
Offset accounts
Offset accounts are also worth considering. Rather than being paid interest on your spare cash, any savings are used to reduce or ‘offset’ the interest on your home loan. It means more of your regular repayments go towards whittling away the principal on your loan.
Line of credit
Many mortgages, including line of credit loans, accept salary deposits, letting you use your loan as a one-stop-shop. Cash can be redrawn when it is needed, while any surplus goes to reducing the mortgage. This way, every cent is put to work, paying off the balance. But you do need to be disciplined about withdrawals.
Refinance your home loan
If your home loan is truly testing your mettle, think about refinancing. It may be possible to find a home loan that suits you better.
Variable or fixed rate
If you need to budget and really cannot afford much higher interest rates, a fixed rate gives you security.
However, beware that fixed rate mortgages often restrict the repayments you can make and penalised extra repayments, so if you can afford to pay more than the minimum, a better option might be a split loan.
Splitting your home loan between fixed and variable rates can offer an element of security, while still giving you flexibility. Alternatively, some lenders now allow you to make extra repayments to a fixed home loan without having to pay a break fee. It is essential that you speak with your financial advisor for more information.
Debt consolidation
Your home loan can also streamline debt management. Consolidating other debts, such as credit cards, personal loans and car loans, into your mortgage can make for easier money management, often reducing the total monthly repayment you have to make.
Sticking to a disciplined repayment schedule and controlling credit card spending can mean valuable savings in total interest.
For more information about your home loans, or if you need help with debt consolidation or budgeting, we recommend that you speak with a qualified financial advisor first. They will be able to help you choose a home loan that suits your needs and current circumstances.
About Intellichoice
Intellichoice are experienced mortgage brokers based in Australia, who aim to help all Australian achieve their financial dreams through home ownership and other investments. the consultants at Intellichoice have over 25 years experience and can assist you with a range of financial products and services, including home loans, business loans, construction loans, owner builder finance, personal loans, debt consolidation and more.
|
|
|
|
|
Copyright © 2003 - 2010 URL.biz. All rights reserved. |
|
