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e-Book This book will teach
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you will then be able to review all of your options
and make the right decision about
your next mortgage.
Fixing your interest rate has the advantage of surety.
You know exactly what your repayments will be for
the term. This is helpful for budgeting and it gives
you the peace of mind that you will not be affected
by interest rate increases. However, fixed rate products
lack flexibility - these generally do not allow you
to make extra repayments. They may also have high
exit costs.
It is now possible to have the advantages of both.
That is the security offered by a fixed loan with
the flexibility of a variable loan. This is called
a 'split home loan' ; part fixed, part variable. This
allows you to hedge your bets so that if interest
rates rise, only a portion of the loan is affected.
On the other hand, if you wish to make reductions
from the principal then the reductions can be taken
off the variable portion of the loan. Many people
see this as the best of both worlds.
Loan Tips
