Why It Pays To Review Your Mortgage Regularly
As a homeowner, it's important to regularly review your mortgage to ensure you are taking advantage of the best possible deal. This can be especially beneficial during times of economic uncertainty, when interest rates are changing and there are new products on the market. In this blog post, we'll look at why it pays to review your mortgage regularly, and how you can go about doing it. We'll also explore how a mortgage broker can help you get the most out of your mortgage and save you money in the long run. So, if you want to make sure you're getting the best deal for your home loan, keep reading!
Unlocking Home Loan Savings
Reviewing your mortgage regularly is one of the most important things you can do to save money and unlock substantial home loan savings. It is important to assess your home loan to make sure it is still meeting your financial goals, as it may be time to refinance or switch lenders.
When looking to unlock home loan savings, the first step is to ensure that your current interest rate is competitive. With the average variable rate being 4.17% and fixed rate being 3.24% as of April 2021, there is a good chance that you can save money by switching lenders. You can compare lenders and their interest rates online, or you can consult with a mortgage broker to get advice on the best loan for your situation.
It is also important to consider the different loan features available, such as an offset account, redraw facility, and the ability to make extra repayments. These features can unlock home loan savings in the long run, and it’s important to consider which ones are right for you.
Another way you can unlock home loan savings is to avoid early repayment fees. Make sure that any lender you choose does not charge an early repayment fee if you decide to switch lenders or refinance. This is especially important if you plan on making extra repayments, as these fees can be very expensive.
Finally, consider the long-term cost of your mortgage. It’s important to understand the total cost of your loan over the life of the loan, as this will help you determine if you’re making the right decision.
By regularly reviewing your mortgage, you can unlock home loan savings and ensure that your mortgage is still meeting your financial goals. Make sure to compare lenders and interest rates, consider loan features, avoid early repayment fees, and understand the long-term cost of your mortgage. It pays to review your mortgage regularly, and it could save you thousands in the long run.
Adopting a More Suitable Lending Product
Reviewing your mortgage regularly is an important part of financial planning, as it can help you to adopt a more suitable lending product and ensure you’re not paying more than you need to.
When looking to review your mortgage, it’s important to consider the type of loan you’re currently using and whether it’s still suitable for your needs. If you’re on a fixed rate loan, you may be able to switch to a variable rate loan and take advantage of any rate changes. Similarly, if you’re on an adjustable rate loan, you may want to consider switching to a fixed rate loan to lock in your interest rate. Additionally, if you’re looking to refinance your loan, you should shop around and compare different lenders and products to ensure you’re getting the best deal.
It’s also important to consider whether you could benefit from switching to a different loan product. For example, if your circumstances have changed, you may want to consider switching to an interest-only loan, or if you’re looking to pay off your loan more quickly, a shorter loan term may be suitable. Additionally, if your financial circumstances have improved, you may want to consider switching to a loan with an offset account, which allows you to pay off your loan more quickly by using your savings to reduce the interest you pay.
Finally, when reviewing your mortgage, you should also consider whether you’d benefit from switching to a different lender. Different lenders offer different features and benefits, so it’s important to compare the different options available to you. Additionally, some lenders may offer reduced rates or waived fees if you’re switching from another lender, so it’s worth shopping around to see if you could save money.
Overall, reviewing your mortgage regularly is an important part of financial planning, as it can help you to adopt a more suitable lending product and ensure you’re not paying more than you need to. By considering the different loan products, lenders and features available, you can ensure you’re getting the best deal and saving money on your mortgage.
Taking Advantage of Interest Rate Changes
It pays to review your mortgage regularly, as interest rate changes can mean big savings to your repayments. Taking advantage of any interest rate changes can help you to save hundreds of dollars each year.
When interest rates change, it's important to look at the impact it will have on your mortgage. If rates drop, you may be able to refinance your loan, reducing your repayments and potentially saving you money. On the other hand, if rates rise, it may be worth considering fixing a portion of your loan to protect yourself from any further rate increases.
When it comes to refinancing your loan, it pays to do your research and compare your current loan to the features and rates of other lenders. Look at the features of the loan, as well as the rate, as the combination of these factors can make a big difference to the total cost of the loan.
It's also important to consider any exit fees or break costs associated with refinancing. These costs can be substantial, so make sure that they don't outweigh the savings you would make through refinancing. It's also worth considering any loyalty bonuses or additional fees when assessing your current loan.
Finally, it's important to seek professional advice when making changes to your loan. A qualified mortgage broker can help you to assess your situation and identify the best options for you. They will also be able to help you weigh up the costs and benefits of different loan options.
By reviewing your mortgage regularly and taking advantage of interest rate changes, you can potentially save hundreds of dollars each year. Make sure to do your research, compare different loans and speak to a qualified mortgage broker to ensure you are getting the best deal.
Improving Your Financial Security
Improving your financial security is an important part of your overall financial well-being. Reviewing your mortgage regularly helps you to identify potential opportunities to improve your financial security.
It is important to understand the current market conditions when reviewing your mortgage. Consider the current interest rates, fees and potential penalties on your current mortgage. Consider any changes in your financial situation, such as an increase in your income, that may allow you to increase your mortgage repayments and reduce the term of your loan. Alternatively, if your financial situation has changed and you are now paying more for your mortgage than you can afford, consider refinancing to a lower interest rate loan.
It is also important to consider the structure of your loan. This includes the type of loan, the repayment amounts and frequency, and the type of repayment option. There may be other options available to you to help you manage your mortgage and improve your financial security. Consider talking to your mortgage broker to discuss the best options for your particular circumstances.
Finally, it pays to review your mortgage regularly to ensure that you are making the most of any changes in the market. Consider how any changes in the market may affect your financial security and review your mortgage to ensure that you are getting the best deal possible.
We understand you and we want to help
At Ello Lending, we understand that reviewing your mortgage regularly can feel overwhelming, but it doesn't have to be. We're here to help make the process easier and ensure you're getting the best deal possible. If you have any questions or would like to review your mortgage, we would love to help. Contact us today and let us help you save money and make the most of your mortgage.
