Why do you need a home loan health check?
When you think of a health check, you typically picture going to the doctor. But what about the health of your finances?
It’s time to ask some important questions about the health of your home loan and assess your situation.
Have you checked your rate recently?
Do you know your home loan’s interest rate? You may be surprised to learn that more than eight in ten home owners don’t, and may be paying more than they need to.
Suppose you have a $500,000, 30-year variable-rate home loan at 4.55%. A reduction of 0.5% could save you approx $1752 in one year#.
Can you change your home loan according to your circumstances?
If you have some flexibility in your monthly budget, consider a variable-rate mortgage that gives you greater payment flexibility and access to money-saving features such an offset account, which can help reduce your interest costs.
How does your home loan compare to current offers?
A general rule of thumb is: if you can reduce your interest rate by 0.5% or more and you’re planning on keeping your property for more than one year, it’s worth talking to Jaira home loans around for a new loan.
You can calculate the refinance break-even point with the closing costs (such as exit fees) and the amount you expect to save. For example, if the closing costs are $1000 and you’ll be saving $500 per year on the new loan, your break-even point is $1000/$500 = 2 years.
Spending just a short amount of time doing a financial check-up on your home loan could end up saving you thousands of dollars down the road. Jaira home loans can help you get the best deal available in the market as we have access to 30+ lenders and will certainly save time and effort for you. Just book a free appointment with us and you will see the difference we can make.