Thinking about refinancing your mortgage? Let's have a look at some of the many benefits associated with refinancing:
Benefit 1: Lower your monthly repayment
Refinancing may let you take advantage of a lower interest rate or even a better loan product. If your financial and/or lifestyle situation has changed since taking out your loan, refinancing to a new lender and/or loan could potentially allow you to benefit from savings such as lower interest rates, fewer fees, additional benefits, etc.
Benefit 2: Reduce the Interest Paid on your Mortgage
By simply paying fortnightly repayments or increasing the amount of each repayment you make, you could possibly save thousands of dollars in interest and reduce the term of your loan.
Benefit 3: Refinancing lets you unlock the equity in your home
A major benefit of refinancing is that it allows you to access the equity in your home. This is a great way to fund home renovations, have a well deserved holiday, weddings or even a new car. The interest rate you pay is your actual Mortgage rate, so borrowing from the equity in your home tends to be the most cost-effective option available to homeowners, rather than Personal Loans or Credit Cards.
Benefit 4: Consolidate your debts
Refinancing can help you to consolidate debts such as a personal loan, car loan or credit card into your mortgage. This can reduce your monthly repayments, thereby making it easier to manage your finances.