Refinancing has become very popular over the past few years as the average Australian
continually obtains more and more personal debt to the point where the strain on
cashflow is almost too much to handle!
Our qualified home loan consultants can show you the best loan to refinance onto and
when to refinance. Some questions you need to ask yourself before you refinance are:
When should I refinance?
When you want to get rid of credit card debt or consolidate a number of your little
loans onto a debt with a lower interest rate. Getting a lower rate will reduce your
monthly payments and save you lots of money over the life of your loan.
Are there other reasons to refinance?
* To switch from a variable interest rate over to a fixed-rate home loan. That locks
in a rate you can live with comfortable and guarantees it won\’t go up.
* To switch from a fixed rate to a variable interest rate. If you plan to sell your
home in the next few years, you can lower monthly payments with a variable rate.
* To convert to a loan with a shorter term. That lets you save on interest payments
and build up equity in the property more quickly.
How do I decide if refinancing is really the right move?
The decision depends on several factors: the new interest rate, refinance costs, the
length of time you plan to stay in the house, how much equity you have built up in
the property, and whether you plan to take cash out of the refinancing to pay for
something like a home improvement project or a new car.
If you plan to move in a year or so, closing costs on a new loan might mean the
refinancing is not worth it.
What is a \’cash-out\’ refinancing?
One that lets you walk away with cash that can be used to pay for things like home
improvements, new cars, or holidays.
Home values have soared in Australian communities over the past few years and many
homeowners have built up substantial equity in their properties, qualifying them for
refinancing to take cash-out loans. Typically, banks will lend up to 80 percent of
the value of your home, and upto 95% in some cases .
For example: Your home is valued at 300,000. You may be able to borrow as much as
$285,000.
Do I have to go the lender who gave me the original mortgage?
No. Shop around, and do business wherever you get the best deal. If you apply to the
original lender, however, you might save money on refinancing costs because new
documents – such as a property valuation – might not be required.
To have one of our qualified home loan consultants show you the best loan to
refinance onto click here NOW!