The loan market isn’t consistent or unchanging. Interest rates rise and fall, lenders change their policies, fee amounts change, etc., and all of these factors decide whether the loan is suitable for you.
It is always a good idea to keep your options open, even if you have stuck with the same loan for over a decade. At Home Loan Comparison, we believe borrowers should regularly check their home loan to see if it is still a good option for them.
How Do You Know If The Home Loan Deal is Still Good?
There are several factors to consider during this assessment process. Here’s a look at what can influence a borrower’s decision:
- The Current Interest Rate
The current interest rate is a big factor to consider while trying to determine the suitability of your old home loan. Use home loan comparison tools to take a look at the current interest rate range in the U.S. You can then compare it to your existing interest rate to see which is favorable. Be sure to compare apples to apples so if you have a variable interest rate loan, compare it to current variable interest rate loans.
- The Total Repayment Amount
Monthly repayment can be a big burden, especially if you have to pay heavy interest rates and fees. Look at how flexible and manageable your home loan repayment is compared to other alternatives available in the market today.
Most loans have regular fees like ongoing monthly or annual fees. They also have redraw fees if they take some money out of their loan account. Look at the repayment amount after including these fees to understand just how much you’re paying every month.
- Facilities Included in the Loan
Different loans come with different features that you might find appealing. It is a good idea to compare your loan features with what is being offered by competing banks. Does your bank provide a redraw facility? Does it offer an offset account? Can you split your loan intotwo? Can you make extra lump-sum payments? Is the loan portable?
Asking these questions will help you determine if your current loan is ideal or if you need to switch to a better deal.Experts recommend checking the loan at least once a year to keep track of what you’re paying. If you want to know more, don’t hesitate to contact us at Home Loan Comparison on 0419 856 669.