Recently The Sydney Morning Herald released a guide to help new home buyers understand their options when they are searching for a new home loan. When buyers understand the features, they can makes the best decision for their new home purchase.
The most common home loans available for new home owners are: Variable home loans and Fixed-rate home loans. The difference between the two can end up costing, or saving a home owner thousands over the life of the loan.
A variable home loan adjusts with the current market and mimics the official cash rate. When the cash rate increases, so does the interest rate on the home loan. Also, if the rates are reduced by the Reserve Bank of Australia, the rate for the home loan dips too. Variable home loans are a more flexible option for buyers, but sometimes a buyer needs a little more assurance.
For buyers who don?t want their payments to change, a fixed-rate home loan is the safer option. Buyers can pick their loan term and pay a set term for the year, three years or five years they locked in. Buyers who choose fixed-rate home loans don?t get the benefit of a rate decrease, but they are also not immediately affected by rate jumps.
Source: http://www.tomorrowfinance.com.au/blog/understanding-home-loan-options/
twin towers gizmodo cnet iPhone 5 9-11 Chris Brown Tattoo Innocence of Muslims
No comments:
Post a Comment