Compare Home Loans to Get the Best Rates

While it’s essential for you to look at the fees and the level of service that you get when you compare home loans, your loan’s interest rate will be with you for quite some time. That makes it an especially important feature to consider.

Small Numbers Can Make Big Differences

When you compare home loans, keep in mind that even a slightly lower interest rate can help you save a lot of money. Even one percentage point could help you save thousands of dollars.

Let’s say you borrow $150,000 with a 7 percent fixed interest rate and a 30-year repayment schedule. Your monthly payments will be just under $1000 per month. By the time you’ve completely paid your debt, you will have spent a little over $359,000.

Now, let’s say you get the same loan with a 6 percent fixed interest rate. Suddenly, your monthly repayment drops to about $900 per month. Your total repayment will be just under $324,000. That means you save $35,000 just by choosing a loan with a slightly lower interest rate.

Don’t Get Scammed By Honeymoon Rates

Some home loans start with extremely low rates. After a year or so, those rates can balloon, leaving you with considerably higher payments. If you’ve decided that an adjustable rate home loan suits your needs best, then an introductory period with a fixed rate could help you. Don’t base your future payments on that introductory rate, though. It’s important to look at the standard variable rate of similar mortgage products to make sure you can afford future payments.

When you compare home loans, pay close attention to your interest rate. It can make a big difference in your total repayment amount. It is important to consider other features, as well. In some cases, paying a slightly higher interest rate could actually help you save money by avoiding excessive fees.

Tomorrow Finance can help you compare hundreds of loans in Australia, and find the best deal for you.