Get the most out of your loan when financing and/or refinancing your property

For those who are refinancing their existing property to buy a new investment the following information is vital for getting the best investment loan? Fact is there’s a lot more to choosing the right loan than it is the interest rates.

You should get the most from your mortgage by looking beyond the interest rate debate and putting loan features, fees and your financial objectives into the equation. With much attention placed on lenders’ home loan interest rates, it is easy to neglect to factor in other loan aspects that may offer longer-term benefits to borrowers than a loan with simply the lowest interest rate. Choose a loan’s features, such as an offset account or redraw facility with associated fees. Whether you choose a fixed, variable or split interest rate will have an effect on how much you will pay in overall interest and how long it could take to repay the loan.

If you are considering refinancing or taking out an additional loan, or a first time buyer doing your initial research, planning ahead will greatly improve the quality of your property ownership. Think about the features you are likely to want in the years to come, this can save a great deal of time and hassle.

“Pattaya Property Professionals” would like to help borrowers choose a well suited home loan by offering you these vital tips.

There are many loan products and different types of lenders available. Professional mortgage brokers have access to a comprehensive mix of large and small banks, building societies and credit unions. They can provide you with a rundown on suitable loan products and deals. The loan term impacts the repayment amount and interest paid over the life of the loan. Interest payments, loan costs, monthly repayments can all be calculated for your benefit. Convenient online loan calculators are available for assistance.

Offset accounts with deposited savings attached to home loans helps reduce the interest accumulated on the loan amount. The loan term is reduced quite considerably.
Note some lenders offer partial offset only.

Similar to the savings offered by a full offset account, a redraw facility allows borrowers to place their income, savings and extra repayments into the loan and enables them to withdraw funds when needed. It is an alternative to storing money in a savings account, where the interest earned is taxable. For those seeking stability and flexibility, a solution may be to consider a fixed rate loan. Loan fees may include application and discharge fees plus monthly or annual account keeping fees. But depending on the type of loan there could be fees for making additional repayments, opting for a rate lock or breaking a loan term early.

If you have built up extra funds in your home loan, some lenders offer full or partial repayment for set periods. These can be helpful if you are starting a family, changing careers or taking time off, and need to hold payments until your cash flow returns to normal.

We hope the information provided to you by “Pattaya Property Professionals” has been useful.

Kind Regards
Frank Satar