Achieving Home Loan Economy
Home owners want to know their home loan is economical, here's a few simple tips for achieving home loan economy.
The debt burden
Buying our first home is a dream come true but most home owners feel burdened by debt at one time or another. Buying our first home is possibly the biggest financial decision many of us will make in or life time, and 30 years is a long time to be tied to a debt.
So it is important to get it right!
There is only one way to get happy with your home loan. Set up a structure to reduce the cost of your home loan as quickly as possible and get stuck in.
Home owners can expect exceptional results and reduce their home loans by following tried and true methods.
A home loan is a large liability; it is a contract that can run for a long period of time, typically 30 years, but the contract does not stipulate that we must have the loan for that long.
Achieving economy in your home loan and ultimately reducing the cost is a strategy, it does not work on its own and requires understanding and application.
How do you achieve home loan economy?
- Correct Structure.
- Aggregate the interest rate- structure to get the average interest rate lower!
- Be very clear on medium to long term goals.
- Understand how banks calculate interest charges!
- Structure your cash flow cycles.
Structuring your Home Loan There is a simple rule of thumb in understanding how banks calculate interest rates. The lower the rate the less flexibility in the repayment of the loan product. The higher the interest rate the more flexibility in repayment. To achieve this we look to create a blend of competitive rates and flexibility. The next step is up to us! Implement the strategy and cash flow cycles correctly and the monthly cost of the home loan will reduce. By reducing the monthly cost of the home loan the result is a higher principal payment. This principal payment accumulates as redraw we create a cycle of regular interest savings and this is how home loan economy is achieved. Can I reduce the cost of my loan? The first step is an assessment of your current circumstances and asking the key Questions. When should I start? Achieving economy in your home loan begins now, the longer we leave it the more it costs. Ask now for your no obligation consultation and in less that 1 hr you may save years and thousands of dollars and ultimately fulfill you dream of complete home ownership.