Mortgages are not just defined as monthly repayments but a sort of debt apparatus to finance liabilities/debts.

Managing your finances is the key to a successful Money Management – Which is essential to any household, family or individual. Previously, talked about 4 reasons not to refinance mortgages. Today, we’re looking into financial areas of a household where one’s life is at stake with huge amounts of bills to juggle after a small mistake.

Sure, refinancing mortgages (see definition) is an famous tactic for people today to control their debts by applying for a second loan to cover all of the other debts that are piling up – Credit cards, phone & car bills, household supplies and so forth. But smart financial management could lead you to less hassle and more benefit(s).


1. Trimming off the POWER card.

According to MSN Money’s Liz Pulliam Weston, “People who take out money to pay off credit cards and have no intention of changing their credit-card behavior”, cited from Doug Duncan’s list of Who Should Not Refinance. The only thing true enough to cite any quotes is to:

‘Spend wisely and do not overspend’. Cutting up your cards and living on cash has its bad points, too, but at least it makes refinancing least relevant to your list of ‘Crazy Ideas to Clear My Debts in Return for 10/20 years.’

2. Define financial goals and calculate precisely

Keep in mind your financial goals either for the year or for the next 5 years. Set an ideal target to reach and move towards it. You don’t have to implement Prince2 training into your financial goals, but at least keep in mind the most important things. Are you going to:

  1. Finance your children for future education programmes?
  2. Build home equity faster?
  3. Renovate the house?
  4. Help a sibling be a guarantor and take the risk?
  5. Travel luxuriously?
  6. Plan your wedding?

These are examples of the financial goals you need to clearly define before stepping further.


3. Financially educate yourself

Read more about Refinancing Mortgages or consult a home loan consultant. Get first hand information from the experts (or maybe us), then plan your finances properly in order to avoid any unnecessary hassles in the near future.

Working with a good home loan broker can be the best thing to do when you have credit troubles clouding your mind. Remember to ask about potential issues such as your DSR (Debt Service Ratio), interest rates, loan tenure, mortgage savings and so forth.


4. Total Costs and Mortgage packages comparison

Calculate your total cost (long term) and see if you’re paying more down the road, especially for the principal (original amount of where a debt interest is calculated). If you’re taking a home loan, be sure to use this home loan calculator or any other calculators found at the right column.

The mortgage and financial consulting services are offered to you FREE of charge without any obligations.

Kindly contact us or email to  consultant@malaysialoan.com.my if you need any enquiry. Thank You

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