By staying on top of interest rates borrowers can make informed decisions about choosing a first-time home loan or getting a better rate by refinancing.
Interest rate percentages are based on a number of factors: the Reserve Bank, the cost of money on overseas markets and the general state of the economy. Interest rates don’t appear to move by much when looked at as a simple number. Sometimes only a fraction of a percent but each basis point makes a significant difference to the total cost of a loan and makes a big difference when you’re working to pay down your mortgage.
When you first lock in a home loan you’ll choose a fixed or variable interest rate.
A fixed rate does not change over a set period of time and your payments will be predictable each pay cycle. On the other hand a variable rate is attached to the market interest rate and will move up and down with the market.
Interest rate calculators are very useful to help you compare rates across fixed and variable loans and translate the rates into an impact on monthly repayments loan length and the total cost of a loan.
The best way to keep on top of those movements is to stay in contact with your dedicated Lendfinian Expert. They will be able to help you shop around to find the best deal for refinancing when the time is right for you.
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