Mortgage Comparison Advice
Finding the right mortgage for your needs can be a very lengthy process but can save you potentially thousands of dollars. Doing a mortgage comparison on a variety of loan options can help to get the best deal that suits your needs. Here is an overview of some things you should consider with your mortgage comparison.
Choosing between Fixed or Variable Loans?
A fixed mortgage rate means that you are locked into a fixed interest rate. This can be fixed for a varying amount of time and this will affect the interest rate that you will be able to get. This can be an advantage when the interest rates are low and can be beneficial to know exactly what your payments will be for the length of the loan.
A variable rate can either go up or down until the loan is cleared. Most mortgage rates with adjustable interests start with a period of 7, 5 or 3 years as an introductory period.
During the introductory period the rate is fixed, after that period, they can change depending on various factors within the financial markets. Adjustable rates may offer lower interests but you should consider whether the market is at a low point and if it is likely to rise. It is important to take an interest rate in too account before choosing either of the two. There are also some more sophisticated options on the market that allow you to fix a percentage of your loan whilst having the rest as variable.
Finding the best Rate that suits your needs
Although finding the lowest interest rate is vital you also need to consider other aspects of the loan for your personal needs. You want to consider the flexibility of your loan and find one that will allow you to make additional repayments when you have funds to do so and re-draw on that when you need to. There are constantly new loan products on the market and it is important to find one that has the features that suit your financial needs.
One of the main advantages to a mortgage broker is there access to many lenders. This makes the loans comparison process so much faster and easier. In addition to that it is not uncommon for a broker to get you a better deal than you would have been able to arrange yourself, their service are free to you and they have software that can electronically compare loans from a number of different lenders.
If you are in the Cairns region contact Cairns Mortgage Broker to find out more about loan comparisons.