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Fixed Rate or Variable Rate ? See This Simulation, Get Clear Answer!
When interest rate is expected to be going up, the classic question of most mortgage holder is “should I fixed my rate or keep it variable”. And most answer they got will be the usual vague notion: “It depends”. Well, do not settle with that answer, because with simple simulation below you will have your answer yourself with your own number! (The good news is, don’t worry about the calculation as the software will take care it for you)
Your Homeloan Also Depends On Your Credit Card!
If you have (too) many credit card and you are thinking about getting a homeloan/mortgage, you need to read this article carefully. Yes, your credit card could actually the one determine whether you get approval for the homeloan or not. Even you are not using that credit card at all! And you cannot really lie about it as it is documented in your credit history. So, what can we do about it ? Fortunately, not that difficult.
Taking a mortgage ? Do Not Change Your Lifestyle Dramatically
My observation could be too narrow, but from what I saw, when someone want to take a mortgage, he/she tends to go for the maximum available even exceed it. The argument usually that they can still afford the repayment, so there should be no problem taking that amount of mortgage/homeloan. It seems they forget one golden rule that I always endorse: if you take a mortgage you cannot change your lifestyle dramatically.
A Sweet Revenge: Let The Banks Pay Your Debt
Here is the thing. Most of you in one way or another, sooner or later, will probably think that the bank you deal with is ripping you off. Homeloan rate, Account keeping fee, monthly fee, yearly fee, transaction fee, exchange fee, settlement fee, break up fee, overdraft fee, loan fee, ATM fee, dishonor fee, name search fee, etc, etc – you name your reason. Well, cannot really blame them as they are in the business to make money by providing financial service, i.e: not charity or foundation that will serve you for free. Now, having said that, how about if there is a sweet way to take revenge to your bank that make them pay your debt: it’s legal, it’s very sweet with very little effort. Interested… Keep reading.
Offset Account: A Must Have For Your Mortgage
If you have a homeloan / mortgage account, and especially if you are on variable rate, one thing that you MUST have is offset account facility. Usually homeloan product that offer this facility will attract annual fee for the convenience, but it’s absolutely essential and worth it. Let us see why exactly it is in this article.
Be Careful With “Interest Only” Homeloan/ Mortgage: a Potential Problem You Should Know
One of the selection when you take a homeloan/mortgage is that you can choose to pay “Principal and Interest” or “Interest Only”. On many occassion, I do recommend to take interest only whenever possible especially if you’re an investor, because the advantage is that you will pay cheaper repayment every month, and if you’re investor that extra money (the difference) can be use for other type of investment that give you more Return of Investment. However, before you really do choose “interest only” loan, you need to understand fully a potential problem associated with this type of loan.
Getting Your First Home Loan or Mortgage: Not That Hard!
One of the reasons people cannot really make up their mind whether to continue renting a home or get a home loan and buy one themselves is that the thinking that getting homeloan must be quite tricky. Fortunately it’s not. In this article we will outline the big picture process of getting a homeloan and you will see yourselves that it’s not that hard.
Why You Should Always Use Mortgage Broker For Your Homeloan
When it comes to selecting home loan or mortgage, doesn’t matter if it’s a new loan or a refinance / remortgage, I without hesitant will recommend all of us to get a service of mortgage broker. A mortgage broker can be “‘disguised” as “financial planner”, “loan advisor”, “property consultant”, “property strategist”, etc… But as long as they offer you home loan product from various lender, they are mortgage broker.
Mortgage: Change To Fixed Rate or Keep It Variable ?
The rule of thumb for mortgage is to fixed the rate if it’s going to go up and keep it variable if it’s going down. As a mortgage holder (definition: the one that has a lot of debt to the lender), of course we want to pay the smallest amount of interest. Especially if the mortgage is on our own home (not on investment property) because usually we won’t get a tax benefit from it. After all, mortgage interest is not giving us any added value, it’s just income for the lender as their reward to lend us the money to buy the property.
During 2008 to early 2009, we can see the interest rate across the globe is dropping down due to global financial crisis. And also now we know that on December 2008, the official US interest rate is virtually zero. (While the interest rate like in Australia or UK are still heading down). But, the real problem is how do we know that it’s going to go up or go down next month ?