The lowest interest rates are actually not the full story.
If you think that the lowest home loan interest rate is the most excellent rate, then you better think again. You might be barking at the wrong tree.
Each one of us has our own perspective when it comes to mortgage loans. With the current decrease of interest rates, a lot of people would suggest that looking for a home loan with a very low interest rate will work best. Home loans with a very low interest rate tend to be very appealing to consumers, but there are actually a lot of things that one must consider. You need to ask yourself some important questions, like:
- Currently, what situation are you in? Having a family or still planning to have one?
- Are you good at handling financial issues? How do you handle money?
- Do you have upcoming plans like planning to have a home renovation, invest in a property, or perhaps go on a vacation getaway?
As a matter of fact, selecting a mortgage is a serious financial decision to make, by assessing and going through your needs and choices. It would be possible for you to save a good amount of money, less hassle and could even save you time. All you need to do is to determine the rates suitable under your current situation by making a careful comparison. Below are some of the success stories of mortgage consumers.
Anna Cooper decided to rent a house for a couple of years prior to any purchase. Consequently, she has decided to buy a good investment property. The moment she got married and started to raise a family, she put her investment property up for sale to increase the appraisal of her brand new family house.
Realising that Anna and her spouse were ready to become parents, they decided to go with a mortgage equipped with a redraw facility. They decided to pay more than they can afford on their mortgage to ensure that if the time came for Anna to temporarily stop working, they would still have some financial resource reserves set up to cover for their needs.
They also recognised another option, that is, to organise a compensation holiday if in case it took longer for Anna to get back to work again. By placing additional money on their mortgage they have decreased the sum of the interest dues and have eliminated paying the taxes which could have been drawn to the loan if they had placed it straight into their savings account.
Sam Roberts decided to divide his mortgage loan on his condo in Sydney. He reconditioned fifty percent of his loan amount, and so he is confident that he will be familiar with what his exact payments will be for the next three years, and opted of a variable rate for the other half of his loan.
His variable loan rate contained a great offset facility. Just by simply saving his monthly income straight into his offset account. He made use of a credit card to pay for his day to day expenses and made sure that he paid all his credit cards in full at the end of the month through his offset account. With this approach he made a huge saving of around ten thousand dollars on his mortgage over the last 3 years.