November 21, 2014 /MM-PressAdvantage/ —
Baulkham Hills, BC – In an effort to help homeowners looking to take advantage of low mortgage rates by locking in a fixed rate, the home loan experts at Master Mortgage Broker Sydney are offering free advice.
With extensive resources available on its website, including information on mortgage rates and loan consolidation options, Master Mortgage Broker Sydney also offers free consultations to give homeowners all the tools they need to make the right decision.
The question for most in this situation is not whether interest rates will be going up anytime soon – most agree interest rates will remain low for quite awhile – but whether they will go even lower.
Some experts believe it is unlikely, while others think it’s a good possibility. Despite the uncertainty, there is a surge of homeowners applying for fixed interest rate loans at this time.
According to Master Mortgage Broker Sydney, the main reason homeowners choose to fix their mortgage rates is for the security it provides. Fixed rates allow them to know exactly what their home loan payment will be each month, in addition to saving them money by locking unpredictable variable rate loans into a stable low rate. Find out more here.
As popular as it is, there are a few things about fixed rate loans many homeowners should understand before they decide.
For one, because exit fees were outlawed in 2011 on Australian home loans, a lot of homeowners believe they can switch banks as many times as they like without penalty. While technically this is true, it can come at a price.
When a homeowner fixes the interest rate of their home loan, they enter into a contract with the lender with specific terms and conditions. The most common of these conditions is that the homeowner will not pay off more than a specified amount of the principal loan balance each year.
In other words, there is a cap on how much the principal balance can be reduced each year.
Secondly, if a homeowner decides to get out of the loan at any time during the agreed fixed term, they could be subject to break costs, fees charged to cover any potential losses the banks may incur by re-lending the money.
The one thing that is certain in all of this, according to Master Mortgage Broker Sydney, is that while interest rates are at historic lows, it is an incredible opportunity to pay down the principal balance of a mortgage. Click here for mortgage advice.
About Master Mortgage Broker Sydney
Specialists in mortgage refinance and reduction, Master Mortgage Broker Sydney covers all of the major banks, second tier banks and most of the non-bank lenders. In addition to mortgage services, it offers guidance on investment properties and financial planning.
Contact:
Dave Fleming
61 2 8861 1689
P.O. Box 8056
Baulkham Hills BC
NSW 2153
Source: http://www.pressadvantage.com/story/458
Release ID: 68894
