could some one explain the difference between a investment loan that a morgage broker told me about.that is a debit account not a credit account
and that, this product, in doing nothing different ,you can shorten the life of youre loan.Are these card?
A credit card is where you use the lenders funds to pay for your purchases/withdrawals. You then pay later – usually monthly.
A debit card looks like a credit card, but you are actually using your own funds. ie you must have funds in the account.
Various loans have these sorts of cards attached.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
mychelle,
Be very cautious of a product that can supposedly reduce your loan term. It has generally been shown that these kinds of products generally cannot do that, unless you make extra repayments. Banks were forced to take calculators off their websites recently because they deceptively showed this – but in fact relied on increased repayments.
Generally the lowest true interest rate will give you the shortest loan term; other features however may be worthwhile, such as lines of credit to make it easier to purchase other properties.
Mick
thanks for that mick as there comments were that the interest doesnt matter. its the fees and charges that do.as the starting rate was 7per cent
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