Definition of refinancing - when you replace your existing home loan with a new one.
There are a number of pro’s and con’s to refinancing; you need to make sure you understand the extra fees and use the home loan calculator to see how much you could save through lower interest rates.
Reasons why you would refinance:
- Lower interest rate
- Reduce the term or length of the loan
- Cash-out for renovations
- Consolidate existing debt
- Purchase an investment property
You need to be aware there may be fees and extra costs when refinancing, a mortgage broker will be able to assess your situation and advise you if it is beneficial for you to refinance.
Fees by your current lender
- Exit fees
- Registration fee
- Discharge fee
Fees by your new lender
- Application fee
- Settlement fee
- Legal fee
- LMI fee (if borrowing over 80% of purchase cost)
There is usually an advantage to refinancing if you can get an interest rate that’s lower than what you are currently on, however every situation is different and it is beneficial to receive advice from Mortgage Choice Bundall, who can review your options with more than 25 different lenders and over 300 loan products to choose from.
If it has been 2-3 years since your loan has settled it is highly recommended to receive a free Home Loan Health Check, Mortgage Choice Bundall can review your home loan statement to see if there is an advantage for you to save on monthly repayments.
Call today for a hassle free home loan review with Antony Muir, Mortgage Broker & Principle of Mortgage Choice in Bundall, 07 5504 5569 or email firstname.lastname@example.org
Check out our Mortgage Choice Bundall social media websites for further information