Life, as we all know, is careless. Situations in your life and your other personal needs vary as you hit the different plot points of your life. Hence, your current home loan must reflect your current requirements.
A home loan that fits perfectly with your annual budget at present might not suit your circumstances ten years later.
Checking your home loan will ensure that your investment and your needs are walking hand-in-hand with each other. Considering the current competitive market situation, you could grab a great deal when refinancing your home loan. It will help save you thousands and, in turn, help you pay off all your mortgage quickly.
How often should you check your home loan?
Ideally, it recommended checking your home loan every five years. At this point, you need to know the stage of life you’re.
Considering two examples:
If you plan to have a baby and you’re carrying the burden of several loans and credit card debts, you may have to expand your home loan into different sections. Example: Additional daily supplies, school fees, etc.
In this case, you could choose a loan with lower monthly repayments in exchange for a longer loan term.
On the other hand, if you recently got a promotion or your children complete with their schooling, that gives you more room in your budget so you could choose a loan with more significant monthly repayments and pay off your loan sooner.
Besides this, it is essential to remember that there are new lenders that enter the market from time to time introducing special offers to attract customers. So even though the ideal time maybe five years, there is no harm to ask your current lender to review the rate considering other options in the market. You may get an additional discount from a moment of curiosity with a quick phone call.
You could also opt for a bank transfer and transfer your home loan to a different bank with lower interest rates if you have regular EMI checks and a good credit score provided that your current bank gives you a NOC.
Remember, change is a law of life, and as your life progresses, you may find it challenging to fit into that outfit that you once liked so much. Similarly, there is no one size fit for home loans, so it is essential to check your home loan regularly and choose a plan that fits perfectly with your current needs.
If you or your friends are looking out for a home loan, then feel free to contact us and analyze your options.