Understanding Mortgage Interest Rates
Research has found that there are more people, active in the property market today than ever before and needing assistance in understanding the often complex mortgage interest rates, mortgage loan products and mortgage implementation processes involved with purchasing a property and/or mortgage refinancing.
Unfortunately at times, people get caught up in the excitement of buying a home (which also at times involves refinancing a home) and consequently the finer details of their mortgage loan (the mechanics of the mortgage) are overlooked and/or not well understood, which often leads to problems or disappointment down the track. Young people (due to inexperience and/or over confidence and at times being overzealous) are especially in danger of entering into mortgage loans that don’t represent the most beneficial deal for them.
Comparing home loans is not as simple as comparing mortgage interest rates.
People need to, be focused and diligent when researching mortgage loans and mortgage interest rates, and not strictly rely on previous relationships with a mortgage loan broker or financial institution when selecting a mortgage or requiring help with the mortgage implementation process. It’s important to understand that familiarity does not always support good results!
It’s also important for intending borrowers to understand that comparing homeloans or mortgages is not as simple as comparing mortgage interest rates alone, and they should not become over enthused by marketing from lenders and/or mortgage loan brokers over singing the virtues of cheap mortgage interest rates. The level of service and convenience offered by a lender; flexibility of repayments, loan term and loan account structure within the mortgage loan facility; availability of loan features and complimentary financial services MUST also be considered.
Most important, does the lender or mortgage loan broker display the same mindset as that of a mortgage planner who focuses purely on finding the most suitable combination of mortgage loans, mortgage interest rates and financial services that will save you the most amount of money and assist you to own your home in the shortest possible time.
Cheap mortgage interest rates invariably deliver short term benefits.
Cheap mortgage interest rates are important but invariably deliver short term benefits as interest rates will fluctuate regularly during the life of the loan plus there is no guarantee that all lenders interest rates will fluctuate by the same amount. It is also important to remember that interest rates fluctuate as a result of either the whim of the lender, international monetary policy or government fiscal policy, neither of these which you have control over. Therefore your ability, through the flexibility and availability of structure and features within your mortgage loan, to counteract and benefit from these mortgage interest rate fluctuations is VITALLY important and will serve you better, saving you the most amount of money during the time you have your loan.
The Mortgage & Finance Association of Australia (MFAA) recently launched a national awareness campaign (supported by their mortgage loan broker members) to help those requiring a mortgage, better understand exactly what it is they are getting into when taking on a new mortgage loan or mortgage refinancing.
For better advice about mortgage interest rates and assistance with arranging your next mortgage, consider the services of an MFAA approved Mortgage Loan Broker who is skilled and knowledgeable in the procedures of Mortgage Planning.
MFAA Full Member 56258
Refinancing Group – MFAA Approved Mortgage Loan Broker