Things You Need To Know About Mortgages
1. What are the pros and cons of refinancing a home loan?
It’s not uncommon for families to consider refinancing their mortgage to a lower rate, this helps reduce running costs on the mortgage and lower the rate. Refinancing a mortgage is not for everyone. If you had your home loan for 5 years and have 25 years to run, then you refinance to a lower rate over a 30 year term you need to consider the fact that you’ll be taking one step forward and two steps back. As dragging your loan back out to 30 years will increase the interest paid over the term of the loan. You should also consider the costs associated with the refinance, if you’re going to sell the property within 2 – 3 years it might not be worth your while to refinance – especially if you have break fees associated with the move.
2. How can I get help if I can’t make my mortgage payments?
if you’re having trouble making your mortgage repayments, it’s to let your bank or lender know – there is no benefit with putting your head in the sand and hoping it will go away. This can be uncomfortable, however it is extremely important to make your bank or lender aware so they can work with you to develop payment plans to get you back on track. When you contact your bank of lender you will need to explain your circumstances and generally will be required to provide further information. Working with your lender will help ensure you can get back on track and avoid foreclosure.
3. I’m considering purchasing a home. What should I do first?
Whilst there are many things to consider when purchasing a home, it’s important to sit down with a banker or mortgage broker to discuss the details – particularly around finance. This meeting will give you an idea on what you can afford to purchase, how much the monthly repayments will be and general information and insights into the purchase process.
4. What professionals can help me with a home purchase?
As purchasing a property is likely to be one of the largest purchase decisions of your life, it’s important to find the right people to help you through the process. You might like to hire a buyer’s agent to help with the property search and negotiations. A mortgage broker can help with shopping around on the market to find you the best deal that suits your requirements. It’s important to have your team ready prior to purchasing the property, once you finalised the negotiations on the purchase you won’t have much time.
A mortgage broker can negotiate on your behalf to get a great fixed rate offer from one of the lenders on their panel. To find out how Hunter Galloway can help you call Nathan Vecchio on 0410 000 689.