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Why Refinance?

Why refinance
There are few certainties in life, but one thing that we all know for sure is that things change. Circumstances change, economies change, and life changes.  So if changes in your life mean that you now need to refinance your home loan, let us help you.  We can show you ways to fast refinance and advice on loan restructures.

People refinance for many reasons. Refinancing your home loan is a great way to reduce your interest rate, consolidate debt or get a loan that has better features.

Top five reasons to refinance:
•    You may want a cheaper rate
•    Switch from variable to fixed rate
•    Free up cash for renovations to your home
•    Looking for reduced or added features with your loan
•    Your financial circumstances have changed

How Mortgage Refinancing Works
The first step is to look for a new mortgage, then you use some or all of the funds of the new loan to pay out your existing home loan. Your new loan can be from your existing lender or a new lender, just whichever loan suits you better. If you change lenders, your new lender will organize paying out your existing home loan.

Refinancing offers a great change to change the terms of your home loan, by replacing the existing loan with a new one.  For example, you may wish to switch from a variable rate to a fixed rate loan.  It is very normal for people to find their circumstances change over time, and need to consider refinancing as a way to match their home loan with their lifestyle.

However, there are some considerations.  A lower interest rate does not always mean that you save money.  Be careful not to get tempted by a lower rate, the lower rate may come with hidden fees attached or a longer loan term. Exit fees charged to release you from your current loan can add up to several hundred dollars.  Ensure that the costs at the beginning will be worth it in the long run.  

For example, if all the fees add up to $500 to refinance your loan, and your new loan saves you $50 per month, it will take you ten months to break even.

And remember, a new lender will need to consider your credit history as well as your current and future financial situation.

When refinancing, ensure that you spend time deciding what options are best for you personally.  Your mortgage will probably the single biggest expense of your life and the monthly repayments are a major responsibility, so it makes sense to look after your home loan and find the best deal for your personal circumstances.

Your Local Mortgage Broker is skilled in home refinance negotiations, and is qualified to help you make the right decisions.  Call us today on or submit your details on line.