Choose The Right Home Loan In recent years financial institutions have been offering great products designed to assist consumers in lowering their mortgages, pay less interest and own their home sooner. Two such products are Loan Redraw Facilities and Mortgage Offset Facilities. Both products can offer savings in interest to consumers, both can assist home buyers paying off their mortgage sooner. They are however two very different products with different purposes. Leading agent Graeme Mills of Tamworth Real Estate believes that consumers need to be familiar with the differences in order to achieve the goals that they are hoping for. “Understanding the type of mortgage you have is the responsibility of the borrower. Ask questions, examine how you use your money and cash flows and understand exactly what it is you are attempting to achieve,” said Graeme. “These products suit two main users. Those people that are savers the redraw facility is the most suitable. Rather than placing your savings into a low interest account you can save the home loan interest,” explained Graeme. “Offset accounts are suitable for those people who simply want to use their pay packet to offset their mortgage interest. This adds up to a series of small savings over the term of the mortgage but ultimately can save thousands in interest,” concluded Graeme. Graeme Mills can be contacted on 02 6766 3399 or 0418 667761 for all your property needs.
Posted on: Tue, 30 Jul 2013 09:01:22 +0000
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