Resi helps borrowers navigate through the mortgage minefield…
by Resi 1/07/2008
Why do interest rates keep rising? What is the US sub-prime crisis and how does it affect me? These are just some of the questions that get answered in Resi’s FREE Home Loan Navigator. This easy-to-use booklet was created by leading non-bank lender, Resi Mortgage to help the many borrowers out there gain a better understanding of the current mortgage market.
According to Resi Mortgage, rising interest rates are being felt by a lot of borrowers who are now forced to curb their spending. The Navigator is about helping borrowers make an informed decision about their existing loan or when taking out a new loan. Borrowers should also speak to their lender, because a simple conversation can arm them with financial strategies to improve their overall situation.
Part of the service their lender should offer is to explore all available options - it’s what they do every day.
Some suggestions that borrowers can consider before taking out a loan or when switching lenders are discussed in the Navigator. These include,
- Making extra repayments. Even a little bit of extra money can wipe years off a loan.
- Interest only repayments. Switching to interest only repayments you temporarily reduce any ongoing commitments.
- Switching to a fixed rate. This can protect borrowers from interest rate fluctuations and set the repayment schedule for a fixed term. Fixing only part of the loan can give borrowers the flexibility of a standard variable loan and the peace of mind knowing what to pay every month.
- Change repayment frequency. Paying fortnightly results in more repayments each year, reducing the term of the loan and the interest paid.
- Extension of Loan Length. By extending the length of the loan, repayments are spread over a greater period, resulting in a reduction in repayment amounts.
A person’s circumstances can change many times, for many reasons, within the life of a loan, and loan conditions should be adjusted to reflect this. The Resi Navigator will help guide borrowers through the home loan market. To obtain a FREE copy of the Resi Navigator fill in the form below and ask for your FREE copy of the Navigator.