So you have decided to refinance or buy a home and you are wondering which is the cheapest interest rate or should I just find the cheapest rate?
Mortgage Broker What If We Finance strongly advises there is more to home loans than interest rates. While certainly a bad home loan with a higher interest rate can cost you thousands and add thousands in unnecessary home loan repayments there is more to home loans than just a cheap interest rate.
Firstly you should consider will the bank lend to me. there is no use picking the cheap interest rate if the lender will not lend to you. Different banks have different credit policies and these should be allowed for before deciding on a bank. For example if you earn commission income or are on probation then certainly lenders may not be appropriate for you.
Secondly is the loan an introductory rate? An introductory rate may be appealing but what is the interest rate once the introductory rate expires? Typically introductory rates tend to be revert to a much higher interest rate and as such you should be careful
Thirdly if you want to make extra home loan repayments or pay your loan off quickly then you should be really careful with fixed rate home loans. These can have large fees associated with early or extra repayments.
You should alway understand other fees such Lenders Mortgage Insurance and annual fees. When you allow for such fees the home loan deal may not be that great.
Finally thou should always consider your goals and objectives before taking out a home loan. If you want to buy investment property that is student accommodation then again you need to be careful as to which lender you deal with.
Perhaps the best and most sound strategy is to talk to your mortgage broker What If We Finance to understand your options and get an unbelievable home loan deal today.