What is refinancing and what are the possible benefits?

September 23, 2014
Dora Platakis

What is refinancing?


Refinancing refers to the process of paying out your current home loan by taking out a new loan. It is also known as loan switching. 


Possible benefits

1, You could access the equity to purchase an investment property.

2, Or, you could finally do the renovations you've always wanted.


3, Buy a new car


4, Or even consider possible debt consolidation. 


5,  You may want to refinance to take advantage of a better interest rate which could potentially allow you to save hundreds, if not thousands over the duration of your loan term


For example:

Let’s say Stephanie has a $320,000.00  loan over a 25 year term. Her current interest rate is 5.4% and her monthly repayments are $1,946.00 per month. 


If Stephanie can refinance to an interest rate of 5.0% her monthly repayments will be $1,870.00 per month - now that's a saving of $76.00 per month. 


Whatever the reason for refinancing, call Dora for a free home loan health check, it could be the solution you've been seeking.


E: dora.platakis@mortgagechoice.com.au

Ph:03 9360 5968  M: 0413 636 645 

Posted in: Refinancing

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