Refinancing – will I be better off?

February 26, 2017
Kathryn Coleman

There are some tempting offers out at the moment to make you seriously consider refinancing your mortgage. $1,500 cash back offers from several lenders to switch banks and Mortgage Choice's $20,000 giveaway promotion.  While these offers may sweeten the deal there are plenty of areas to consider

Aside from Cash Prizes and bonuses there may be several reasons it will be in your best interest to consider changing banks and refinancing

Better interest rate - we all want to save money and securing a lower home loan interest rate will certainly help, but what does that mean in dollar terms.  Here's an example. Let's say Michelle has a $300,000 loan repayable over 25 years. Her current rate is 6.4% and her monthly repayments are $2,006.  Michelle is considering refinancing to a loan with a rate of 5.9%  a rate reduction of 0.50%.  She can lower her repayments to $1,914  a saving of $92 each month.  There may be some costs associated with refinancing to consider and George Cremona will explain in simple terms how this will affect your position and whether the proposition is worthwhile.

Home Loan Features – Do you want an offset account?  Do you have the ability to pay weekly? Are you paying for features or extra accounts that you just don’t need or use.  Having the right home loan product to suit your needs and cash flow is another way to save money and provide simplicity to your banking.  With over 20 lenders on our panel and 1000’s of products to choose from your mortgage broker can assist with selecting the product to suit your needs

Convenience – does your current lender offer access via a branch network?  ATM locations suitable to where you live and do they cost extra to access. 

There are some situations where borrowers should avoid refinancing.  If you are in fixed rate loan there may be some costly penalty fees to pay out these loans early.  However there is generally no charge to ask your current lender the question and consider all costs when refinancing.

Once you have made the decision to refinance we make the process very seamless and straightforward for you.  The process will be similar to how you applied for your original loan - and George Cremona your Mortgage Choice broker can guide you through the process.

So you really have nothing to lose.  Speak to us today to make some time to speak with our mortgage broker about your options and who knows you might even be the lucky winner of our $20k Giveaway and pay off that home loan even faster!

Tags: RefinancingMortgageHome Loan

Posted in: Refinancing

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