November 26, 2015
With winter well and truly behind us, summer starting to take it's grip and christmas just around the corner you may find yourself thinking about your future plans and the state of your home loan. By refinancing, you might be able to repay your home loan sooner and get on track to achieving any other financial goals you may have.
With fierce competition between Australia’s lenders, it makes good financial sense for borrowers to regularly check if their existing home loan still suits their current needs.
It may be your financial and/or lifestyle situation has altered since taking out your home loan? You may have taken out a fixed term loan some time ago and feel you are locked in to a much higher rate than is now available? If so, refinancing to a new lender and/or loan could potentially allow you to benefit from savings such as lower interest rates, fewer fees, additional or more beneficial features offered by other products.
To help you get a sense for whether a home loan refinance is for you, and whether now is the right time to do it, I have put together a few simple steps to help get the ball rolling:
Make preliminary calculations: Before you shop around to compare your loan options, get a clear understanding of your loan’s fees, ongoing costs, features and interest rate. You want to compare the overall costs of switching loans versus the overall savings to ensure that refinancing is in your best interest.
Know what you really need from a home loan: A low interest rate is important but it’s not everything. Decide on the loan features you feel will help you achieve your goals sooner. Keep in mind some might have fees attached, depending on the product. You may also be able to save money by dropping features you don’t use.
Hunt in the home loan market: Do this by trawling loan comparison websites, calling lenders or better yet, have an experienced mortgage broker, like myself, research the options for you. This will give you a solid idea of how your current loan stacks up in today’s market place.
Negotiate with your lender for a better deal: Now you have a good idea of your loan’s value compared to other loans, see if your lender is eager to retain your business by sweetening their offering.
Refinancing is one way of helping to ease the burden of your home loan, either by freeing up extra funds that can be put to another use, or allowing you to pay down your loan more quickly resulting in you becoming debt free sooner.
Once you have taken the above into consideration, if you feel that refinancing is a great option for you to live debt free sooner, we'd ba happy to help you by doing the leg work for you. As a current and/or previous client, we appreciate your business and would be happy to assist you with the number crunching to help you make the right decision.
As always, if you have any other thoughts or questions regarding your loans or future financial needs, or would simply like a free home loan health check to help you undrstand your options, please don't hesitate to give us a call or to simpley have a chat.
Mortgage Choice in Bundall - 07 5504 5569 or go to mortgagechoice.com.au/antonymuir
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