Home Loan Tips
For most people their home loan is the biggest financial investment theyâ€™ll ever have to make and with property prices having increased so sharply this year that investment is getting every bigger.
But few home owners actually realize the true value of their mortgages. When dealt with wisely a home loan can help to propel ones living standards and quality of life by growing your financial status.
But, like most powerful tools you home loan account can also be the cause of serious indebtedness.
Jackie Cameron, from moneyweb.co.za, explains the danger zones that exist in your home loans. Click here to read the Report.
- Dipping into your home loan to buy cars: Using your mortgage account to buy a car is a smart way of reducing your overall debt. Your home loan interest rate is much lower than the interest charged on a car loan. Although the only way youâ€™ll end up saving money is if you continue to pay the full installment into your mortgage account that you would have paid into your car loan.
- Remortgaging whenever you can: Jackie explains applying for a re-advance /re-mortgage every time your property value increase can mean trouble. A remortgage arrangement is a clever way for a bank to get you to pay more money for your property â€“ plus interest. Itâ€™s not a bad thing to use the equity to grow your assetâ€™s value, like adding on a room, but donâ€™t dip in for other purposes.
Ultimately the funds in your home loan is your own responsibility, the options are there for you to use the extra funds to in your mortgage account for whatever you may choose, but be careful not to abuse your bond.
For free assistance regarding your home loan account complete this form online and a home loan consultant will contact you.