Financing Options

Have you considered refinancing?

Refinancing your home loan has a number of benefits. A lower interest rate or better terms could help you pay off your mortgage much faster and help you reach your financial goals sooner. But, it’s important to be aware of the shortcomings too. Take a look at what you need to look out for when refinancing your mortgage.

Benefits of refinancing

The number one reason home owners choose to refinance is to get a lower interest rate on their mortgage. Lower interest rates mean smaller repayments each month, saving you a substantial amount of money over the life of your loan. And paying less towards your mortgage each month frees up extra cash to put towards other things you may need.

Refinancing could also mean better terms, shaving years off your home loan and helping you get debt-free that much sooner. Switching from a variable to a fixed interest rate could provide you with stability and peace of mind knowing exactly how much you’ll be repaying each month. And refinancing could be an opportunity to tap into your home’s equity and use that money to finance home renovations, a family holiday or pay medical bills. 

Top tips to refinancing

1. Make sure you’re clear on what needs to be repaid to your existing lender and ensure your new loan covers these costs.
2. Shop around and compare deals before making any decisions.
3. Look beyond the bottom line and compare all aspects of each lender’s product and service offering.
4. Do the maths – calculate exactly how much you’ll be saving against how much you’ll need to spend to refinance. 

Knowing when to refinance

If you only have a few years of payments left on your mortgage or you’re planning to move home in a few years, it’s probably not worthwhile refinancing. But, with interest rates at an historical low, it’s a good idea to review your mortgage anyway to ensure you are getting the best deal.

If you'd like a free consultation with my financial partner Sarah Langley from Mortgage Express, send me an email and Sarah can advise if this is a good option for you.