Keeping Up With The Daily Mortgage News
Could Save You A Lot Of Money
Many people have to stop and think and even stumble when asked what their current mortgage rate is. That’s interesting, because even though today’s lifestyles are hectic just keeping up with everything, it means a lot of people are letting some serious money slip through their fingers.
One way to save a lot of money is to endeavour to keep up with the daily mortgage news. By making a habit of focusing on the housing industry and the mortgage market and it’s happenings you will have an up to date knowledge of what the market interest rates and trends are prior to walking into any lenders premises. Most Australians don’t have the foggiest about what current interest rates are available when they decide to visit their local bank or talk to a mortgage lender. The Amazing fact is, it occurs a multitude of times every day in Australia.
Most would say, “That’s why I’m going to see the lender, to find out what rates are available.” However, that’s kind of like walking into a used car sales yard and telling the salesman that you’ll leave it up to them to find you the right car at the right price.
Even if you previously refinanced your loan and at the time you did, you determined that they had given you the best rate available going at the time. Nonetheless, things do change over time. In recent years the major banks have become emboldened to the point they don’t think twice about increasing interest rates outside of the RBA cycle of increasing or lowering rates. Of course, they glibly come up with all kinds of excuses as to why that is. Nevertheless, their profits continue to go to record highs year after year.
The fact is, lenders will increase existing customer’s interest rates by stealth, but they won’t tell their existing borrowers what rates they have on offer to new borrowers. In fact they don’t even advertise them; they keep them tightly under wraps. They only offer these rates as a last resort if you’re looking like you are going to walk out the door. Kind of like the used car salesman that doesn’t want to lose the sale and says to you, “If I can get it for x price, would you be happy with that?”
We as humans continually strive to better our quality of life and a major contributor to this being able to happen is having ready access to surplus money. We work hard to impress our employers; we even study to increase our skill levels in order to increase our qualifications, all in an effort to bring home more money. But, we seldom take the effort to see if there are any leaks in our cash boat that we could immediately fix to give us that extra surplus cash.
Keep in mind if you would like to have that extra leverage over your chosen lender or mortgage broker make the effort to keep up with the latest news in the mortgage markets. Because, should you be in the process of purchasing or refinancing a property, whether it is an owner occupied or investment property, lenders will pick it up straight away if you are naive on interest rates as opposed to someone who is knowledgeable.
Per chance you are discussing the finer details of a loan you’re interested in with your lender or broker and you then call them out after they quote a too high rate, they are instantly going to be aware that you are well informed and a person who knows what you’re doing. Rather than have you walk out on them they will instantly sharpen their pencil and get down to giving you their best deal.
That said, they will know they’ve got you exactly where they want you when they quote you a 4.65% interest rate and you don’t flinch. The real facts are they can’t quote you a definitive rate until they know more about you in the way of what type of loan you want, is it an owner occupied or investment loan, what the loan amount will be, what the loan to value ratio is going to be and what your credit score is?
There is no shortage of lenders that will try this on in order to increase their profits. Keep in mind that many bank employees as well as mortgage brokers are now incentive based when it comes to their incomes. The ones to be most wary of are the bank employees who are more into short term gain as they frequently change job roles within the industry. Whereas, savvy mortgage brokers are smart enough to look at building long term relationships with their customers.
Saving 0.5% on a principal and interest $550,000 mortgage will reduce the monthly repayment on the loan by $163.00 a month. The time saved on a 30 year mortgage will be 3 years and 2 months. The interest saved will be a whopping $50,183.
It pays to keep up with the mortgage news. If you don’t have time to do it, make sure you mortgage broker is keeping you well informed. Make a better life for yourself and your family by not inadvertently giving your money away to the bank.
from Master Mortgage Broker Sydney http://ift.tt/2krXqma