Home Loan Interest Rates

Although South Africans have had relatively low home loan interest rates over the past few years, they seem to be on the increase and it is important to know how to manage them.

The key to managing an increase in home loan interest rates is to learn how to make the best of your home loans.

Here are a few ways that you can save a few thousand Rand every month on your bond:

First, pay as much into your bond every month that you can afford. In other words, pay over and above your minimum required bond repayment. For instance, by paying just R100 more per month into a R300 000 home loan, will shorten a 20 year loan period by as much as 2 years!

Next, even if home loan interest rates drop or you have managed to negotiate yourself a lower home loan interest rate, try to keep your repayments at the same level they were. This will accelerate your repayments and give you a savings on interest.

Another great way to work around changing home loan interest rates is to shift any available fund or cash reserves into your home loan account. By doing this you are allowing your money to 'work for you' instead of just sitting in a low interest bearing bank account.

Also, find out how much your home loan provider charges for deposits and withdrawls in and out of your bond. If the charges are low enough, deposit cash in and out of your bond if and when you need it.

Always bear in mind that a debit order is the best way for paying back your home loan because not only is it convenient and stress-free, but you will avoid potential late payment fees.

Finally, keep abreast of home loan interest rates and the status of your particular home loan.

By being well informed on home loan interest rates, general home loan developments in South Africa and what the various home loan institutions offer, you will ensure that you are always in control of your home loan and not the other way around.

Related Insurance Articles:
* Home Loans Basics
* Home Loan Transfer Duties
* Home Loan Options
* Should You Keep Your Bond Open
* How To Use Your Bond As A Financial Resource
* First Time Home Buyers Missing Out On Best Bond Deals
* Renovating To Increase The Value Of Your Property
* Refinancing Your Home In South Africa

3/7/2008 4:04:58 PM