Two of the most important assets a person usually owns are their house and their automobile. A home is an asset which usually appreciates over time, and has sentimental value as well. Automobiles do depreciate but they are sometimes the only method of transportation and vital for individuals. It is also important that one does due diligence on the safety of this product. Therefore, when looking to purchase a home or car, or looking for insurance after buying, it is vital to be cautious. Although this certainly applies to America, it is just as important in any other country. Let us first discuss homes.
When purchasing a home, it is arguable that the loan itself is as important as the plot being purchased. There are many types of loans, and many people made big mistakes during the years before the financial crisis by not selecting the correct type of loan. Many owners were forced to default as hidden clauses caused rates to rise significantly only shortly after taking out the loan. Many of these people are unfortunately homeless today.
The best type of loan to lock into today would likely be a 30 year fixed mortgage. Mortgage buyer Freddie Mac said Thursday that the average rate on the 30-year loan slipped to 3.34 percent, the lowest level since 1971. Interest rates in the US are basically at the lowest level they can get, and can only go up. If someone wants to lock in at a fixed rate there is no better time than now. Paying off the loan over 30 years is usually the most affordable option for middle class buyers, which is why 30 year fixed mortgages, should be considered first. Also, it could be a good time to consider refinancing at a much lower rate if you purchased a home 10 or 20 years ago.
However, just like many other products, when it comes to home loans, it is not one size fits all. Buyers should seriously consider all options available before making this life changing decision. It is important to speak to a loan officer who you trust and ask what he or she thinks would be good for you. Different types of loans to consider include, fixed rate loans, variable home loans, no deposit home loans, and interest only loans. iselect is a good site to check out if you live in Australia.
With regards to automobiles or cars, it is imperative to get the RIGHT type of car insurance. One should not just look for the cheapest option. In many cases, this type of insurance will not cover vital areas. On the other hand, there are many charlatans selling over-priced insurance policies, which offer even less options then other alternatives. Getting in an accident can cost tens of thousands of dollars. It is important to find an insurance policy which covers needed areas and is cheap. The difference between a good and bad policy, could be thousands of dollars. Before deciding one should speak to their insurance agent about different companies or options. For readers in Australia, iselect is a site you can check out for advice on comparing car insurance.
On both of these issues do not make the mistakes many other drivers or home owners make. We want to make sure our readers always get the best advice, and since we are not experts on this topic, urge them to find those who are.