Make sure you get the most out of your home loan
Ever wondered if you could get more out of your home loan?
Lots of home owners do well to keep up with mortgage repayments but also dream of finding a way to get loan-free faster, to make other big purchases, or a combination of the two.
If that sounds like you then you're probably keen to do all you can to get the most out of your mortgage.
So are you?
Could you be paying off your mortgage quicker?
If you're keen on paying back that loan then why not get aggressive with your repayments?
It's great if you're comfortable with your repayments, but think about pushing yourself to put even more towards your loan.
Just a small increase to your monthly, fortnightly or weekly repayment could net you big savings over the life of your mortgage.
Not only that, it will help you to build equity even quicker.
This can open up the option of borrowing against that equity even sooner to fund renovations, another property, or a holiday – to list just a few examples.
Are you using all those features?
Home loans are simple and complicated all at the same time.
On a basic level, they are made up of principal and interest which you need to pay back to your lender.
Yet look closer and loans have all sorts of different working parts that can affect how much interest you pay, whether you can make extra repayments and much, much more.
Getting more out of your loan could be as easy as learning to take better advantage of these different features.
For example, if you have an offset account feature but aren't using it, you could be missing out on thousands in potential interest savings.
The same goes if your loan allows additional repayments and you haven't been making any.
This isn't possible with all loans, so if yours has this feature, why not take advantage of it?
If you get a bonus at work, receive a tax refund or have some extra cash at the end of the month, you could put it towards your loan.
Over the life of your mortgage, small additions like this can add up to considerable savings.
Is it time to change it up?
Convinced that you need to take some concrete action over your home loan?
If so, it may be time to think seriously about refinancing.
There are lots of ways you can refinance your mortgage, and the one that is right for you will depend on what you hope to achieve.
Refinancing does cost money, so it's a good idea to think about how much you could end up saving in the long run. If this is more than the short term costs, you could be onto a winner.
Why not have a chat with a mortgage broker about your refinancing options – they can give you expert advice about whether it is a good choice for you.
They won't just look at your case on paper, but will get to know you by discussing your finances and your bigger dreams in life.
You'll be able to make a well informed decision about your loan because your broker will lay out all your options.
They'll explain the costs of refinancing and help you find a scenario that works in both the short and the long term.
Even if you don't end up changing things up, getting an expert on the case means you benefit from their insider knowledge of home finance and can be confident about your mortgage strategy.