November 06, 2014
Considering refinancing but not sure if it’s right for you?
There are many benefits associated with refinancing; by letting your Mortgage Broker do the research for you, can possibly save you hundreds off your mortgage.
1. Lowers your monthly mortgage payments
Refinancing can let you take advantage of the lower interest rates on offer; you can possibly unlock lower fixed rates, or secure a lower variable rate that could drop even more in the future.
2. Total interest paid on your mortgage could be reduced
It is still possible for you to pay less in total interest, depending on the loan term, cost of refinancing and the interest rate that you receive.
3. You can pay off your mortgage faster
Circumstance often change, for instance your income has increase since you bought your home. Paying more on your mortgage each month is not always allowed according to the loan terms, so refinancing could be the ideal option for you. Choose a lower term to pay off your mortgage sooner.
4. Better credit could qualify you for lower interest rates
If you bought your home when your credit was suffering, you probably paid the highest interest rate available. If you have rebuilt your credit since purchasing your home can take advantage of lower interest rates through refinancing. A better credit score will mean lower interest and better mortgage terms.
5. Refinancing lets you unlock the equity in your home
Unlocking the equity in your home is a major benefit of refinancing. You can get a line of credit based on the value of your home and the amount that you’ve already paid on your mortgage. This is a great way to fund home renovations, pay off debt or purchase an investment property. The interest rate is equal to your mortgage rate, so borrowing from the equity in your home tends to be the most cost-effective financing option available to homeowners.
Seeking professional advice will provide you with all the facts and benefits relating to your circumstances and particular home loan.
Who doesn’t want to save money and be on top in the future?
Call Mortgage Choice Bundall today on 07 5504 5569 and arrange an obligation free appointment.
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