![]() For variable rate loans, these have an interest rate that changes over time in response to changes in the market.If you’re someone who have stable but tight finances, this can protect you from the possibility of rising interest rates. Many homeowners opt for fixed rate as it allows them to plan and allocate their finances. If you want predictability over payments, you might be someone who prefer fixed rate loans. A fixed rate loan has the same interest rate for the entirety of the borrowing period.However, if you’re thinking of selling your home or refinancing your mortgage after a few years, a variable rate could work in your advantage - especially when it hits lower rates and become more affordable in the short term. When used for mortgages for instance, locking in a 30-year fixed rate will secure you with affordable repayments. Know the difference between a fixed rate and a variable home loan and discover how you can leverage each to your favor. Talk to a Loan Market mortgage adviser to find a home loan to match your repayments strategy. This mortgage repayment calculator lets you calculate these savings based on different repayment amounts over various terms. The earlier in the loan term you begin making additional repayments, the greater the benefit in terms of time and money saved. You can use the contributions from things such as bonuses and tax returns to make ad-hoc additional loan repayments and reduce the principal on your mortgage faster. ![]() Once you have an idea of your home loan repayments it’s important to find out how extra mortgage repayments can save you money and let you pay off your home loan faster. You can save thousands in monthly repayments and take years off your loan by making extra repayments.
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