January 2017 Market Update - Thinking about refinancing?
The New Year is the perfect time for you to review your current financial situation.
Specifically, with interest rates hovering around record lows, now is the ideal time to make sure you are still in the right home loan for your needs.
By refinancing into a lower rate you can significantly reduce your monthly mortgage repayments and, in turn, free up some of your cash flow.
Of course, if you are thinking of refinancing your mortgage, there are some simple steps you should follow.
Firstly, it pays to do your research. Before you start down the refinancing path, it is a good idea to know exactly what home loan products and interest rates are available to you.
By knowing what else is available on the market, you can determine whether refinancing is the best option for your needs.
Once you have identified what products and rate are available, it might be wise to seek out professional help.
Your local mortgage broker can do all of the leg work for you and liaise with a number of lenders to negotiate you the best possible mortgage for your unique set of circumstances.
Finally, before refinancing it is critical for you to understand the costs associated with refinancing.
While there can be some fantastic benefits in refinancing your home loan, there are costs associated with the process, including break fees, loan application fees, valuation fees, settlement fees, stamp duty and, in some instances, Lenders Mortgage Insurance.
The costs associated with refinancing can be significant. As such, it is important for you to work out how much money you will save by refinancing and then identify whether it will outweigh the cost of doing so.
If you would like more refinancing tips, call Mortgage Choice today on 13 66 78.