| mortgage calculator, mortgage, loan calculator | 11 Feb 2008 11:00 PM |
| Home Loan Enquiries by Suzanne Finlay | |
The process of shopping around for home loans and comparing the different rates and costs offered by lenders and mortgage managers, has been made easier with the help of web search engines and loan calculators. Borrowers are actively using these search engines and calculators to access loan features and costs. These resourceful tools provide a wealth of knowledge and enable borrowers to make better home loan choices. Whether it’s a variable rate, fixed rate, offset or split loan, the loan calculator has been a valuable tool when making loan enquiries.
Most new sales enquiries are now generated from either rate driven borrowers or from those seeking to refinance to loans which incorporate additional features (such as split loans, offset and redraw facilities) with little if any, extra cost. Borrowers now expect the flexibility of a spilt loan that enables them to customize their accounts (making tax time much easier) and which offers them the choice of variable or fixed interest rates, interest only vs. principal and interest repayments. Loan calculators have enabled borrowers to not only compare interest rates but to factor in identifiable costs such as, establishment fees, ongoing fees and discharge fees.
For those refinancing, the discharge costs (early repayment fees) are especially important to consider early on in the process – you do not want to find yourself committed to another lender and having outlaid valuation and establishment fees, only to find that your exit costs are significant and have a real impact on the viability of a refinance. These days some borrowers are refinancing every three to four years – while they may be chasing a better interest rate it is debatable whether the exercise leaves them better off over the long term. Exit penalties with your existing lender should be factored in to the refinance costs to determine whether there is a real financial benefit. Many mortgage brokers will not alert you to the possibility of exit penalties – they are paid on a commission basis on the new business they generate so negatives such as early pay out fees are sometimes glossed over, if they are mentioned at all.
Fixed interest rates have become increasingly popular in today’s climate with interest rates on the increase. Borrowers are seeking the stability of fixed interest rates and at the same time benefiting from unrestricted additional repayments with certain loan facilities. Some fixed rate 100% offset loans offer the flexibility of making additional repayments without penalty (many alternate loan products have penalties when additional repayments are made to a fixed rate loan). The loan calculator illustrates the benefits of making additional payments which will reduce the loan term and the ongoing interest charges thereby giving big interest rate savings to you.
Incorporating an offset feature with a fixed rate loan has become an attractive marketing tool for those lenders and mortgage managers that offer this facility. You need to do shopping around a little to find a lender or mortgage manager offering this product – again the use of your search engine can greatly assist with this exercise. Not only is the offset a fully transactional loan, combined with the security of a fixed loan repayment, this loan structure can further reduce a borrowers interest costs. You can track down an offset loan calculator by simply searching offset calculator – then do the numbers and see the savings in interest you can generate. Many offset loans in the market place are not available with a fixed interest rate. Borrowers can use the loan calculator to illustrate the interest savings – with 100% Offset you only pay interest on the difference between your loan balance and the offset balance.
Most new sales enquiries are now generated from either rate driven borrowers or from those seeking to refinance to loans which incorporate additional features (such as split loans, offset and redraw facilities) with little if any, extra cost. Borrowers now expect the flexibility of a spilt loan that enables them to customize their accounts (making tax time much easier) and which offers them the choice of variable or fixed interest rates, interest only vs. principal and interest repayments. Loan calculators have enabled borrowers to not only compare interest rates but to factor in identifiable costs such as, establishment fees, ongoing fees and discharge fees.
For those refinancing, the discharge costs (early repayment fees) are especially important to consider early on in the process – you do not want to find yourself committed to another lender and having outlaid valuation and establishment fees, only to find that your exit costs are significant and have a real impact on the viability of a refinance. These days some borrowers are refinancing every three to four years – while they may be chasing a better interest rate it is debatable whether the exercise leaves them better off over the long term. Exit penalties with your existing lender should be factored in to the refinance costs to determine whether there is a real financial benefit. Many mortgage brokers will not alert you to the possibility of exit penalties – they are paid on a commission basis on the new business they generate so negatives such as early pay out fees are sometimes glossed over, if they are mentioned at all.
Fixed interest rates have become increasingly popular in today’s climate with interest rates on the increase. Borrowers are seeking the stability of fixed interest rates and at the same time benefiting from unrestricted additional repayments with certain loan facilities. Some fixed rate 100% offset loans offer the flexibility of making additional repayments without penalty (many alternate loan products have penalties when additional repayments are made to a fixed rate loan). The loan calculator illustrates the benefits of making additional payments which will reduce the loan term and the ongoing interest charges thereby giving big interest rate savings to you.
Incorporating an offset feature with a fixed rate loan has become an attractive marketing tool for those lenders and mortgage managers that offer this facility. You need to do shopping around a little to find a lender or mortgage manager offering this product – again the use of your search engine can greatly assist with this exercise. Not only is the offset a fully transactional loan, combined with the security of a fixed loan repayment, this loan structure can further reduce a borrowers interest costs. You can track down an offset loan calculator by simply searching offset calculator – then do the numbers and see the savings in interest you can generate. Many offset loans in the market place are not available with a fixed interest rate. Borrowers can use the loan calculator to illustrate the interest savings – with 100% Offset you only pay interest on the difference between your loan balance and the offset balance.
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We came across your mortgage calculators from a google search and then checked out your 100% fixed offset loan, and as you know the rest is history. We couldn't be happier with the loan and how you looked after us. We're spreading the word (not to mention the $500 for referring). Thanks Austral, you guys are great!