How to Own Your Property Sooner
Use Any Available Extra Dollars to Pay Off the Mortgage Loan
Sep 3, 2009
Due to the global financial crisis interest rates are at their lowest in over four decades, putting extra dollars in the hands of homeowners with variable rate mortgage loans. The homeowners can now use the additional funds to reduce their mortgage and the term of the loan.
A Mortgage All-in-One
All-in-one facilities save interest on a loan by having all of the borrower's income directly deposited into the loan account, which immediately reduces the loan balance. The loan account effectively becomes the borrower’s main banking facility. Access to the funds is by way of cheques and/or debit or credit cards.
Moving Houses During the Loan Term
In the ongoing quest to own property outright, if homeowners are likely to move during the loan term and want to take their mortgage with them, they should make sure that the lender will allow the transfer of the loan to another property and not charge the earth to do it. If the loan isn’t portable, they are likely to incur discharge costs and new establishment fees, which may delay their hopes of owning the property outright sooner.
Bargain Hunt for Mortgage Loans
Homeowners who have premium loans with all the features and benefits are most likely on a higher interest rate and paying more for facilities and features they don’t use. They should consider refinancing and switching to a more basic product offering a lower interest rate – where the repayments will be lower, therefore they should be able to afford to pay extra and own the property quicker. However, borrowers should be aware they may incur break or ‘switching’ fees when refinancing.
Get to Know the Benefits of the Loan Product
Before signing up for a mortgage loan, homeowners need to really look around at the various options and compare the different interest rates, fees and features of different loans from a wide range of lenders. Once decided, it’s a good idea to keep an eye on the lender and look for any hints they may make with regards to changes in their interest rate/s. This will enable the borrower to switch accordingly and potentially save time off the loan term and overall interest paid.
Don’t be Afraid of Change
The borrower's financial or lifestyle may change during the life of the loan so it’s a good idea to undergo a home loan health check every two years. Reputable mortgage brokers will be able to compare the existing loan to a wide variety of newer products and determine if there is a better option for the homeowner's current situation, such as a loan offering a better interest rate or more relevant features that will help them achieve their goals quicker.
 |
 |
 |
