What are the next steps?
Ideally you’ll want to start talking with your existing lender or a new lender at least 6 weeks prior to your current fixed home loan term ending. This will give you enough time to properly assess your options for refinancing.
If you’re in a position to refinance your mortgage with a different lender, outlined below are some home loan options worth considering. You can also speak with a home loan expert at Lendi via our partnership to discuss your specific needs. This is a free service and you’re under no obligation to switch loans via them, but they might have additional loan options for you to consider.
Benefits of using a fixed rate mortgage cliff calculator
A fixed-rate mortgage cliff calculator can be a fantastic tool with many
advantages. Knowing how your repayments will change can help you plan for the
future and make decisions, such as drafting a household budget, comparing
fixed-rate home loans, or deciding whether to refinance.
The key benefits of Mozo’s fixed-rate mortgage cliff calculator include the
following:
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Estimating your future repayments, whether you’re comparing a potential
fixed-rate option or seeing what will happen to the one you already have.
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Planning your budget for future mortgage repayments, since it gives you an
expanded view of how much your fixed mortgage could cost over time.
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Comparing different repayment scenarios. By changing inputs like your
interest rate, term, and principal, you can understand how various offers
could impact your finances. This also illustrates how refinancing could be
beneficial for you.
How to use a fixed rate mortgage cliff calculator
To use Mozo’s fixed rate mortgage cliff calculator, you’ll need a few key pieces
of information:
- Loan amount left: how much of your principal you
still have to pay back.
- Your current monthly repayments:
what you’re repaying now during your fixed term.
- Years
left on your home loan: most home loans last between twenty to thirty years, so
input how many years you have until it’s completely paid off.
- Your
revert variable rate: the interest rate your fixed home loan will roll onto when
your fixed term ends.
Once you input this data, the
calculator will let you know your repayments at the end of your fixed term and
how much extra you’ll be paying per month.
A fixed rate mortgage cliff calculator matters in your home buyer journey
Like any home loan calculator, a fixed rate mortgage calculator is essential for anyone planning to purchase a property.
Providing an estimate of your future payments enables you to plan your finances more effectively and save money in the long term. So, if you’re in the market for a mortgage, consider using a fixed rate mortgage cliff calculator to help guide your decision-making process.
