Interest Rate Quandry - To Fix Or Stay Variable

Interest Rates Quandary: To Fix or Stay Variable

The inevitable increase in interest rates has seen consumers surge to the online home loan hints service with questions about whether to fix their interest rate on their home loan.

Founder Paul Ryan says the website has been inundated with questions from concerned borrowers juggling with the concept of gaining security and surety of a fixed rate versus the flexibility of a variable interest rate loan

"People are concerned and in many cases confused. Everyday, there are headlines about the need to increase interest rates, the need for the banks to increase their rates to cover their increased cost of funding and consumers are seeking advice on what to do with their rates" say Ryan

"Just in the last week we have had over an 18% increase in the number of visitors to the site and most of the questions that are being asked are about whether to stay fixed or variable." Ryan continues.

Ryan, a 20 year veteran of the home loan industry believes all consumers should trust their gut instinct.

"Whether to fix or stay variable is comes back to each and every consumer, their current financial situation, their level of debt, do they need surety or are they happy to roll with the punches on variable rates. We are all different, with different objectives and with a varying appetite for security versus freedom."

There are however some important considerations consumers need to understand before they make their decision on whether to fix or stay variable.

* Are you able to make additional repayment on the fixed rate portion during the fixed term?
* What are the break costs if you want to get out of the loan or sell your property during the fixed rate term?
* Can I split my loan and have a part fixed and part variable home loan?
* If you apply for a fixed rate today will it be the same rate when my loan settles?
* Will you still be able to access your redraw or offset accounts on the fixed rate loan
* Will the long term strategy of a fixed rate still work if there is a lifestyle change or a change on circumstances

Each of the components reflect Ryan observation of consumers seeking professional advice and then deciding on what is best for them in their current circumstances.

For further information you can contact

Paul Ryan - Founder
E [email protected]
T 02 99591600
Website www.homeloanhints.com.au
Follow www.facebook.com/homeloanhints or www.twitter.com/homeloanhints

About Home Loan Hints
Home Loan Hints is unique, free and interactive consumer website. The site acts as a portal where consumers can access educational content, ask questions and gain independent and unbiased home loan advice. Consumers are able to:

* Research and increase their knowledge on home loans and credit facilities
* Ask their home loan question online and receive independent and timely advice
* Share experiences with other consumers through community blogging opportunity.

SOURCE: Home Loan Hints