OnlineMortgage.com. au can help you fast. You've got a goal to aim for; you've decided to get a mortgage; you're aware of the principles and may have learned along the way how some mortgages work. You have learnt that you can save time and money on a 30 year mortgage by making fortnightly repayments instead of monthly repayments as required by the bank. When you first found out about this, you may have become quite excited knowing that you too can fulfill your dream of accelerated home ownership.
We'd say you're ready to take the next step.
Let's now take a look at why it is so critical to have the correct mortgage in place to suit your needs.
Planning Is One Of The Key Principles To Your Success
You will have noticed that banks and non-conforming lenders are now recommending many different options for you to look at. With the right type of loan that best suits your situation, paying off your mortgage or at least reducing its balance and being able to tap in to the equity you have created in your home will be exciting.
The old P&I Loan, with your bank automatically debiting your bank account is now the old fashioned way of having a mortgage. In contrast, even though a Home Equity Loan or the type of Interest Saver/Offset Account that may be recommended, you will have the power to choose the mortgage that best suits your needs. You must have the right tools to help you stay on track.
Therefore, we strongly suggest to anyone contemplating taking out such loans that they do not do so before speaking with a Mortgage Professional that can clearly look at your income and expenses so that an achievable plan can be put into place.
A Home Equity Loan acts as a day-to-day transaction account as well as a home loan and you can redraw funds right up to the original amount. Therefore, the most important aspect of successfully using it to pay off your home or investment loan quicker is to manage it properly.
That is, you need the right tools to effectively keep track of money going in and coming out of the account because from now on, every dollar you deposit and every dollar you withdraw from your home loan will have a direct impact on how long it takes you to pay it off.
We cannot emphasis enough the importance of this and we will go as far as to say:
WARNING
DO NOT refinance to, or use a Home Equity Loan without having an accredited Mortgage Professional show you the correct tools to manage this new type of product.
Using a Home Equity Loan without these things is like trying to drive to a foreign destination without a map and being blindfolded at the same time. You will never know where you are, or where you are going.
This warning is not as critical for those using an Interest Saver/Offset Account because the worst you can do with this type of loan is pay it off in the contracted term - usually 25 years.
Where Can You Get A Plan?
We think the best option is to go to our website Online Mortgage and complete the simple request form and a Mortgage Professional will be in touch with you shortly.
How Our Service Helps You Stay On Track With Your Mortgage Plans
We bet that like most Australians, whenever you spend your hard earned cash right now, you probably have no way of assessing how each expense affects your financial situation in the future, especially in relation to paying off your mortgage.
However, by using the right mortgage, you will be able to see a direct relationship between the income you receive and the money you spend on the overall term of your mortgage.
For example, it's important that you know the different effect depositing or withdrawing lump sum amounts will have on your mortgage. We all know rates haven't moved for many months, but it's always good to have a look at how a rate movement might affect you.
By using a Mortgage Professional, you will be able to accurately calculate some scenarios that will have an effect on the overall term of your home loan or investment loan.
Using a mortgage professional gives you instant feedback about the effect that your spending habits will have on the overall term of your home loan.
By using a Mortgage Professional you can learn more about an Interest Saver/Offset Accounts and new product releases. For example the growth of Low Doc loans for the self employed.
The principle of debt reduction remains exactly the same as described throughout life. This means that you can now be in control of how long you take to pay off your home loan - and not your bank.
HOT TIP FROM A MORTGAGE PROFESSIONAL
Remember that an Interest Saver/Offset Account is unlike a Home Equity Loan or a Redraw Account.
That is, if you want to have money to spend for lump sum expenses in the future (e. g. holidays, renovations, etc. ), you will need to ensure that you have these funds sitting in your Interest Saver/Offset Account until you need them. If you transfer these funds into your home loan, then it will most likely be considered a lump sum repayment by your lender and your money will then be locked into the loan. If you then want to get the funds back out, you will most likely have to pay a refinance fee.
"Most people do not differentiate between responsibility and guilt. You have to understand the difference. Take on responsibility, not guilt. "
- Dan Kennedy -
Mortgage Professional Summary
The SECRET to successfully achieving any goal in life is to make certain that you have a plan and stick to it.
We have observed many people rushing off and refinancing to a new home loan without first having these things in place. Then, six months later, they still owed the bank the same amount of money they started with. This was especially true for those using a Home Equity Loan without a plan and the right tools.
This is not the fault of the bank, the loan or our system. It is simply a case of people not willing to take responsibility to prepare themselves properly.
Therefore, our professional recommendation is: DO NOT DO ANYTHING BEFORE YOU SPEAK WITH AN Online Mortgage Professional.
This is extremely important and it's why we encourage you to have a very precise plan and the proper tools to help you stay on track.
