(This is a Guest Post)
Some lenders use short-term benefits to entice borrowers into choosing their services. Getting an extremely low fixed introductory interest rate for a year is nice, but it doesn’t necessarily mean that you should choose that option to finance your home purchase. Instead, you should compare home loans by focusing on the future to make sure that you choose a lending option that will meet your needs throughout the loan’s term.
Home Loans With Repayment Holidays
Some home loans let you take repayment holidays. This is a period of time when you stop sending the lender repayment. Perhaps you have fallen on difficult times or you just need the money for something else. Regardless, it gives you a little break.
To take advantage of repayment holidays, you will probably have to repay ahead of your schedule. If you are three months ahead on your schedule, then you can take a three month repayment holiday.
This is an excellent option for families that want to make sure they have enough money to repay their loans without sacrificing their lifestyles. By paying ahead, you make the future more secure. Look for that option when you compare home loans.
Home Loans with Early Repayment Options
Repaying your entire home loan balance ahead of schedule could help you save money by avoiding those final years of interest. Plus, you get to free up some of your income instead of dedicating it to monthly home loan repayments.
Some lenders charge rather large fees for early repayment. Others let you repay the balance early without any penalties. When you compare home loans, consider whether you might want to pay off your loan before the full term has expired. If so, you should look for an option that does not charge early repayment fees.
This post was provided by Tomorrow Finance – An Australian Mortgage Comparison Company.