A bit of extra cash is always welcome, and refinancing your home loan can be a way to pocket serious savings.
Refinancing simply means replacing your current home loan with a new loan. There is a whole range of reasons why it's a step worth considering.
Plenty of ways to save
The mortgage market is continually changing, and chances are, refinancing could help you save with a lower rate loan or benefit from more flexible loan features. Or, your circumstances may have changed, and you need a home loan that fits your new lifestyle.
Refinancing is also an opportunity to put home equity to good use, providing low-cost funds to renovate your home, invest in a rental property or enjoy a family holiday. As home loan rates are currently among the lowest of any type of finance, refinancing can be a far cheaper option than using a credit card or personal loan to achieve these goals.
Switching to a new loan can also be a way of consolidating personal debt. Folding high rate debts like credit card balances into a lower rate home loan can substantially reduce interest costs. This lowers your total monthly repayments, freeing up cash to pay a bit extra off your home loan each month to save even more.
Weigh up the costs
The process of refinancing is very straightforward, and your local Mortgage Choice broker can explain what's involved.
However, refinancing may come with costs including application fees on your new loan and mortgage discharge fees on the old loan. This makes it important to weigh up the savings of refinancing against any costs involved. Your Mortgage Choice broker will crunch the numbers to let you know if refinancing puts you ahead financially.
Find out more
To know find out how refinancing can put money back in your pocket, contact your local Mortgage Choice broker today, and start adding up the savings.