With interest rates falling and no end being in sight, many home owners are now beginning to ask if they should refinance. The answer to this question depends entirely on your personal and financial circumstances.
Why Should I Refinance?
Refinancing occurs when you replace your existing home loan with another loan that provides you with greater benefits. These benefits include a lower interest rate or additional features that allow you to pay off your home loan faster.
Refinancing can also allow you to use your home equity so that you can buy an investment property or vehicle, or to consolidate debt. Another reason to refinance is to ensure your home loan keeps pace with your lifestyle. A new job and a growing family can mean that you need to make some financial adjustments.
Refinancing is Easy
Many homeowners are fearful of change. They remember when they first took out a home loan and the difficulties that they encountered. However, this fear in today’s lending market isn’t warranted. Many existing home loan holders have greater equity in their property and more assets. Plus, a lot has changed in relation to home loans.
Mortgage brokers have simplified the lending process, and they are able to help you make sense of the current lending market. A mortgage broker can also help you to compare home loan products with your existing home loan. This way you can weigh-up the costs, such as application and on-going fees, and rates, before you elect to refinance. This will then allow you to calculate whether or not you’ll be better off financially if you refinance.
Do you want to refinance your home loan? If so, then it’s time to call eChoice. We can recommend mortgage brokers who can find you the right home loan.
Written by eChoice
Since 1998, eChoice has helped more than 50,000 Australians secure a home loan through its network of over 25 lenders and hundreds of loans. Best of all our service is cost and obligation free!