Refinancing Your Loan

Because circumstances change regularly the attraction of paying less interest on a home loan / mortgage or investment property loan for some is a simple decision.  However when looking at refinancing you should always remember there may be costs involved in paying out your existing loan and establishing a new one.  It is imperative that all the figures be carefully checked and that you seek independent advice before proceeding.

 Aside from the benefits of a reduced rate there are a numerous other benefits such as:

• The ability to access extra cash through taking out an equity loan.
• Consolidating other debt and credit cards.
• Borrow extra to purchase an investment property.

Refinancing in today's home lending market is much easier than it used to be. Many lenders offer an 'express' refinance service, where the complete process can be completed in 30 days. 

So be clear about your goals, get more information on the types of loans available.

There has never been a better time to refinance your home loan especially now as rates have decreased and lenders are offering more attractive deals in a bid to win new customers. But whilst it is true that refinancing has the potential to help you reduce the costs associated with borrowing money, it is not necessarily the right strategy in every situation.

Refinancing your current loan may make sense for one or more of these reasons:

• If you want a lower interest rate and lower repayments.
• If you want a fixed repayment rather than one that can increase as interest rates rise.
• To consolidate your debts.
• If you want to use some of your home equity to pay for home improvements or other needs.

If you would like some help to understand your options, please contact us.

In Summary 

• The decision to refinance should only be made if the long term savings outweigh the initial expenses. Check with your current lender what it will cost to pay out your loan early.
• Don't select a new mortgage based only on its annual percentage rate, look at the features and options that best suit your situation.
• To get the best possible refinancing deal, you'll need to shop around, crunch some numbers, and ask lots of questions.

OK so now you want to refinance what next?

Contact us and arrange a time to talk.