When considering whether or not to refinance your mortgage, there could be many reasons why. Some Reasons may include –
- Is there a better home loan product for you?
- Your interest rate is too expensive.
- You don’t like your current bank or lender.
- You may want to borrow some extra money, and my current bank or lender won’t allow it.
- You may want to increase your mortgage to buy an investment property or for other investments, and your bank or lender advised you cant borrow enough.
There are many options if you are thinking about refinancing your home loan. It is important to speak to a qualified Mortgage Broker to see which option suits your financial situation. A Mortgage Broker will also have many different banks and lenders they deal with, so they can look at many different options, and find one that suits you best. This may include staying with your current bank or lender, if it suits your financial situation better.
There are many things to consider if you are thinking about refinancing your current mortgage. Lets have a look at some things that you will need to know if you are thinking about refinancing your home loan-
- Are their any mortgage closure (exit) fees if you close your current home loan?
- Will you be better off financially with a different home loan?
- What are the application fees, exit fees, monthly fees on a new mortgage?
Some advantages and disadvantages of refinancing your current mortgage may include –
- Your interest rate may be cheaper saving you money.
- You may be able to consolidate some debt or use extra funds from your mortgage to renovate your home, purchase a car etc.
- Your new bank or lender may be more flexible and suit your needs better financially.
- It may be expensive to close your current home loan.
- There might also be application fees with a new bank or lender.
It is important to talk to a Mortgage Broker, and determine what may be best for your financial situation before you make any decisions. This way you can learn the pros and con’s of refinancing your current mortgage, and make an informed decision.
It is always a good idea to keep up to date with your mortgage, and what is happening in the world of home loans. As home loan products change rapidly, there may be a cheaper or more suitable mortgage option to suit your needs now. A home loan health check with us acting as you Mortgage Broker doesn’t cost anything, just a little bit of time. You may even find a more suitable mortgage option with your current lender, so it is worth an email or call, to discuss your needs, and we may be able to save you some money.
Call 1300 307 155 and start saving today!
Latest posts by Daniel Jovevski (see all)
- Variable vs Fixed Home Loans – Which one is right for me? - December 5, 2014
- Mortgage Tips for Borrowers - November 20, 2014
- 5 Hot Tips for Getting the Most from Your Home Open - October 8, 2014