With home loan interest rising, homeowners must know how to reduce their mortgage payments. Now that may seem hard, but as good mortgage brokers in Wingham will tell you, there are steps you can take with your bank that can help you do this. Now these are secrets that the bank lending you your home loan will not be shared; sometimes, even the mortgage brokers won’t! So, read this blog and learn these little-known secrets of the bank regarding your home loan.
The first one is your home interest rate. Most of us think that it is fixed. However, the banks do sometimes lower it. The catch is you have to be a very loyal and persistent customer of that bank. And most importantly, you have to go and talk to the bank in this regard. Your mortgage broker can’t help you because the basis is your goodwill and standing as a customer with the bank. Most mortgage brokers won’t tell you about this because they can’t help you. You should make a fuss when you talk to your lender and show them you can take your business elsewhere if they don’t negotiate the interest rates. Remember, even a 1% reduction in interest rates can save you a lot of money.
The second is how you are paying your mortgage payment. Most people pay their mortgage once a month. However, there are banks and lenders that offer better rates if you pay fortnightly. If you compare the amount you have to pay in this period (often twice a month), you will find that the combined amount is less than your previous monthly mortgage amount. This way, you will not only get better rates but will also pay your loan faster. Why? Because there are more fortnights in a year than months. By choosing this payment period, you can repay and be debt-free at least 3 to 5 years in advance.
Many factors will determine whether you can get these terms from your bank or lender. First, you have to be very sure of your financial situation. If you need more clarification about your financial situation, you can talk with the service provider for business loan services in Kellyville and let them guide you. Also, you should be aware of the current interest rates and your own so that you can benefit if you switch your interest rates.