Best Home Loan Interest Rates for Refinancers

Refinancing is the process of signing a new loan to pay out your current home loan/mortgage. Whether you’re looking to refinance so you can benefit from the best home loan interest rates, increase flexibility on your loan or add extra features, making the switch can actually leave more money in your pocket, if done correctly. This is why it’s imperative to look at all options prior to making a decision on refinancing your loan.

Choose the Right Loan

If you’re looking to refinance, you are most likely already aware of the types of loans available to you. From fixed interest loans and line of credit loans to variable rate loans and package loans, there is a lot to consider. Take a step back to see why your current loan is no longer working and which loan actually offers what you need. Be sure to slow down and read the fine print – what may look like a promising loan with a low interest rate may actually charge your more after a set period, or incorporate lots of hidden fees.

Be Aware of what it Costs to Refinance

Yes, refinancing may eventually be more cost-effective and affordable long-term, but you may incur some substantial fees in the initial. These fees can include the loan application fee, valuation fees, settlement fees, lender’s mortgage insurance (LMI), exit fees and stamp duty. Look at your current home loan terms and conditions to have a better understanding of what costs you may incur when refinancing your home loan. It’s better to have these fees under control then be unpleasantly surprised after you’ve been approved.

Gain Better Insight into the Refinancing Process

As with anything concerning large sums of money, being prepared and having an idea of what to expect is half the battle when choosing to refinance. Generally, refinancers talk to mortgage brokers or financial advisors to assist them in finding the right loan. Some mortgage brokers can even assist you with your application. In order to have the best chance at having your application approved, your potential new lender will need to see information regarding all your loans, six months’ worth of statements for all home/personal loans, your most recent rates notice and building insurance policies. Once a loan is chosen and approved, you can expect the process to reflect the following:

  1. Your current lender will be notified of the change and your mortgage being ‘discharged’ or paid out
  2. A payout figure is given to you once your current lender knows the date of settlement
  3. Your new lender pays off your outstanding loan
  4. The deed to your property is transferred to your new lender

Many choose to refinance to help relieve financial stress and benefit from an alternative loan that suits their lifestyle and budget. For more information about the types of loans and interest rates available, talk to a professional lender or mortgage broker who can provide you with a range of options tailored to your specific needs.

Best Way to Collect Superannuation Funds during Retirement

If you work in Australia, then you are likely to have at least one superannuation account set up to help you out financially during your retirement. All employers in the country are required to contribute a set amount out of each employee’s pay cheque to their super account. You are also able to make contributions to the account throughout your working life.

These funds will sit in your super account until you reach at least 60-years old. If you are over 60-years old and you are no longer working, you may be eligible to start receiving funds for your super account. Otherwise, you will need to wait until you are 65-years old to receive these funds.

Super Fund Options

Once you are eligible to start receiving your superannuation funds, you will have three disbursement options. You can select to leave your super funds remain in the account untouched until later, you can invest these funds in a retirement income stream, or receive a lump-sum or regular instalments of your funds. Below is a closer look at these three options.

 

  • Leave Super Funds in Account. If you have reached the age where you can start withdrawing funds from your super account, but do not really need them just yet, it may be a good idea to just let them sit in  your account. This will provide more money for you later on down the road when you may be in need of additional funds. The downside is any investment portions of this money may be taxed at a higher rate than other methods.

 

  • Invest These Funds. You can also select to transfer some of these funds to a pension investment stream. This can provide a great investment opportunity for those who can afford to transfer a portion of their funds. This investment is taxed at a lower rate and can increase your savings. However, there is always a risk involved in any type of investment, and the government sets minimum amounts that you must transfer to these funds.

 

  • Start Withdrawing Funds. Your third option is to start withdrawing funds from your super account. You can request a one lump-sum payment for the total amount of funds in your account, or receive regular payments for years to come, or a combination of both. It is not advisable to withdraw your entire super account funds unless you have a clear plan for how to utilise these funds.

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Hobbies Cost Money

Ever since I was a little kid I always had a hobby or pastime that interested me. That being said, I’ve seen my interests and hobbies evolve quite a bit over the years. As a child I used to love racing miniature stock cars, and would even sink my meager allowance into buying tiny little parts for them every week. Eventually this transitioned in sports cards and sports memorabilia. I was becoming more of a football and baseball fan, and I wanted all the big name rookie cards and action figures I could find. This proved to be even more costly than miniature stock cars, and thankfully by this point I was working and making decent money. Now as an adult I find myself tinkering around with, and building, various websites. I have created, nurtured, bought, and sold dozens of websites in all different niches. This has probably been the most time and money spent on any hobby in my life, but as I’ve noticed, the older I get the more money I seem to spend. That’s not to say that all hobbies are super expensive. You can still enjoy your free time on the cheap, and allow me to illustrate below.

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