What Would You Do With A Big Rate Cut?
Monday February 2, 2009
As the RBA are due to meet again and are expected to announce a large rate cut, what will you do if your mortgage company matches this? Many people will use money that they have freed up from mortgage payments to simply save. This is a very strange idea, as the interest that can be earned by saving money is very often terrible compared to the interest that can be saved by putting the same amount of money into a mortgage.
When you have taken out variable rate mortgage home loans with no limit on the amount you can make in extra repayments, it can be an excellent idea to make use of a redraw facility so that you do not need to keep spare savings lying around. Mortgage calculators will clearly show you the benefits of putting as much of your money into your mortgage as possible.
Please visit our comparison page if you would like to compare home loans and mortgages or browse our site to learn more about a specific mortgage company.
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