You may have recently been considering refinancing your mortgage - possibly for a number of reasons. If you're not sure, think about the following benefits when making that decision....
1. Save Money
The number one reason people refinance is to save money. Either through a lower interest rate, or savings on other aspects of your home loan package (such as credit card and/or account keeping fees), refinancing can provide you with some significant cost savings. Depending on the interest rate, the term of your loan and the cost of refinancing, you may find that you also save on the total interest paid and possibly shortern the term of your loan as well.
2. More Flexibility
Since the time you took out your loan that your financial and/or personal situation has changed, and you therefore may find that refinancing to a different type of loan with different or additional features may better suit your new situation. The ability to make additional payments, redraw funds, or split your loan between fixed and variable may be reasons why you choose to refinance.
3. Unlock the Equity in Your Home
For many customers, the ability to use the equity in your homeloan, is the most cost-effective way to finance that "once in a lifetime" holiday, to renovate or to purchase an investment property.
4. Consolidate Your Debts
As life becomes more complicated, you may wish to simplify your finances by refinancing your home loan - thereby allowing you to consolidate your other debts (including credit cards, personal loans or car loans) into a single loan. In this way, refinancing makes it easier to manager your finances.
If refinancing your home loan is something you're considering, you may like to read the Mortgage Choice Refinancing FAQ. Should refinancing be right for your situation, call me on 0409 363 420.