Money Matters

Business - July 15th, 2005
Magellan Japan

Tel. 03-3769-5511

How to save hundreds a month on your mortgage

When it comes to spending habits, the sad truth is that most people don’t put their financial assets to the best use. One of the greatest examples of this is your mort­gage.

Surprisingly, most people fail to educate them­selves about the dangers and the pitfalls of not shop­ping around for the best mortgage deal, be it for home purchase or investment properties. Taking advantage of low interest rates, especially if you refinance your borrowing in Japanese Yen where rates of 1.6% are available, can lead to even more substantial monthly savings. This all leads to a reduction of loan term and with that, vastly reduced interest costs.

Further cost savings can be achieved if you have other consumer debts such as car loans and credit cards, which charge very high rates of interest, often in double digits. The power of such a rate reduction could be used by millions of homeowners to reduce debt, in­vest in retirement, or to simply put money away for an emergency. It is amazing that so many still neglect to utilise these powerful and straightforward techniques. This then begs the question of where to start in order to reap the rewards of refinancing your mortgage. When it comes to finding home mortgage information, the internet has become a boon to the weary researcher. In fact, finding sites about mortgage refinancing is far from the hard part when it comes to searching the in­ternet. Perhaps the hardest part about searching for financial information online is insuring that one will indeed get the best quote.

One other way is to approach an adviser who has knowledge and experience of the mortgage market­place and can place deals which are often not possi­ble using the internet, for example, a firm that has a demonstrable track record of dealing with a range of lenders and mortgages in different countries and dif­ferent currencies.

In order to help you search for a better home mort­gage rate, here are a few tips and questions you should consider when searching for appropriate advice:

  • Take independent specialist advice as well as search­ing the web.
  • Will you be able to obtain an Advance Credit Line?
  • Will your credit rating be a hindrance to a new loan?
  • Will the lender work with you if you have bad credit?
  • Are you getting a new loan to refinance your rate? Or are you getting a loan for a secondary reason (paying off debt or home improvement needs for example).
  • Is your credit report accurate?
  • Is the quote free? Also, you should be under no obli­gation should you decide not to do business with the lender.

These are just a few of the points that you should remember when researching the vast resources avail­able. If used wisely, your mortgage could be the step that changes your financial future for the better.