Review Your Home Loan Regularly
Reviewing your home loan regularly will help you to assess its effectiveness and take steps to correct any waste if necessary. Being on top of changes rather than waiting months or even years can potentially save you a lot of money.
When reviewing your loan, you may find a lower priced finance package or better loan structure is available. To decide whether or not you should refinance, ask your mortgage broker the following questions:
- How have interest rates changed since I first secured my loan?
- What finance packages are other lenders offering which may suit my situation better than my current loan?
- Will I save in the long term by switching lenders?
When comparing finance packages, be sure to look at the overall terms and conditions and assess each finance package against your needs. Things to consider are:
- interest rates (can you change your loan if interest rates increase/decrease?)
- features/flexibility (can you make additional repayments if you want to?)
- fees (are there any exit fees to be aware of?)
A thorough review of your current home loan can also be useful if you want to look at investing in more property, renovating your current property, or consolidating your debts.
Your home loan should allow you to live life the way you want to, so don’t be afraid to explore all of the options available.Tags: home loan, refinance