What Is Annual Interest?
When a mortgage broker is assisting their client with researching and selecting mortgages to apply for, clients may wonder what the interest rate on mortgage agreements indicates. A good broker will have a clear understanding of mortgage interest rates and have the knowledge needed to successfully answer any questions or concerns their clients have regarding the interest of their selected home loan.
A mortgage interest rate is the percentage of a client’s existing principal loan balance that a client is paying their mortgage broker for borrowing the funds they require to successfully purchase a home or property. A mortgage interest rate can indicate to the client and borrower how high the expense of borrowing funds is.
A client will be required to pay the principal payment and mortgage interest rate total on a repayment schedule that will be created and agreed upon by the lender and borrower. Borrowers with a mortgage interest rate will be expected to pay that rate of their total home loan balance.
Borrowers should be aware that their mortgage interest rate is subject to increase and decrease depending on some specific factors of Australia’s investment and economic activity.
A mortgage broker should direct their potential and existing customers interested in obtaining a home loan and mortgage to use a borrowing calculator to determine the number of funds they are individually estimated to receive. At Mortgage Street, we understand the importance of having reliable resources to assist your clients, which is why we have created the How Much Can I Borrow Calculator!