How To Mortgage
Rate cut gives home loan borrowers a golden opportunity to build equity in their home and pay off their debt sooner
Consumers are being pulled in two directions at once. The Reserve Bank's decision to cut the cash rate by 50 basis points will make home loans more affordable and encourage buyers. But the news that house prices are falling will also cause concern.Both the Australian Bureau of Statistics and RP Data-Rismark reported earlier this month that house prices around the country have fallen by an average of 4.5 per cent over the past 12 months.
A fall in house prices makes home owners feel less wealthy than they were. And the constant stream of job losses adds to the gloom, making people feel insecure about their jobs and the level of debt they are carrying.
Read more: http://www.smh.com.au/money/borrowing/extra-payments-a-winner-20120508-1y9lh.html#ixzz1wQBOHEGL
