FEM or Financial Efficient Mortgages offer some serious advantages over traditional mortgage porducts whilst retaining the traditional safety of a principal and interest loan (the ones you always pay off).
They still have the ability to have several fixed and floating rate options ensuring you can pick and choose the best rates that your crystal ball can provide.
The really effectiveness comes from the additional savings made as a result of the no cost or no fee structures. (unlike some offers these are not limited to a certain balance that has to be maintained either. They have no fixing fees, no bank fees, no statement fees, free direct debit and auto payment loading, all done through their 24 hour internet banking service. You get an eftpos card and can shop around for the best credit card offer with any bank you choose (If you really want a credit card).
No wonder they are so popular.
Simply mixing the bank and mortgage account uses the power of your unspent money (groceries, monthly bills even the mortgage money) to save interest until you spend the cash.
Gone are the old fashioned and dangerous revolving lines of credit, with the FEM loans all you can do is be better off.
Have you got a FEM loan?
If your mortgage pays off faster when you pay fortnightly - sorry but NO.
If you have a revolving line of credit - sorry but NO.
If you pay fixing fees, account fees or have to have a minumum debt balance for zero fees - sorry but NO.
If you have paid someone to arrange the loan for you? you may well have but you have also been ripped off.
I am happy to report that such mortgages have been around a number of years and have proven themselves as solid result generators with some borrowers cutting their mortgage repayment time in half.
The really magnificent thing about FEM mortgages is that you can build up savings in the good times and draw on them in the bad times, well at least for as long as you have a mortgage.
Want to know more about mortgage types - CLICK HERE
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