Refinancing your mortgage is the process changing your home loan to suit your changing circumstances.
It is strongly recommended that you get a mortgage health check every few years over the term of your loan to ensure you are not paying too much interest and that you are maximizing your repayments and reducing your interest. Also, it is worthwhile checking our the other banks and lending institutions as things can change and you may find you can save a small percentage on your loan.
For example, a saving of 0.4% on the average home loan of $350,000 over the term of the loan could see you saving up to $70,000 in interest payments.
Now that is worth knowing about right!!
So, how does refinancing work?
If you decide to refinance your mortgage, we will advise on any fees required for you to exit your current loan and ensure that the savings stack up.
When you take out a new loan, you can use some or all of the funds to pay out your existing loan. The new loan often comes from a different lender and each institution has different requirements.
Why do people refinance?
- You might need extra cash to renovating your home
- You could possibly pay off your debts at a cheaper rate by rolling them into your home loan
- You may want to raise cash for another investment property purchase
- To save on interest rates
- To allow more flexibility that their current loan offers
- To set up an offset account
- To change to interest only repayments for a period of time
- To move from a variable rate to fixed rate or vice versa
How can refinancing benefit you?
As mentioned above refinancing may be a better way to structure your home loan into the future and help save you money.
There are obvious benefits to saving money and or achieving some of the objectives listed above
A home-loan health check will generally cost you nothing and could save you thousands. Your home loan features could be improved or you could find yourself with a lower interest rate. A better payment structure could also be introduced, making your repayments more manageable.
Checking the state of your current loan could uncover the possibility of taking out additional finance, which can consolidate any other debt you may have or help you purchase an investment property.
If you think you are due for a finance health check – please contact Mortgage Solutions to organize a meeting to review your current loan and present some better options for you.
This service is FREE and there are no obligations so just like visiting the dentist – why wouldn’t you get a health check for your loan. Oh, and it doesn’t hurt!!
Go to our Refinancing Education Centre to learn more about refinancing.
Call us today on 1300 857 762 to see how painless it can be!