3 Questions to Ask before Refinancing
As a homeowner, it pays to check your mortgage options regularly. It might surprise you to learn how much money you could save simply by shifting over to a more suitable package.
Plus, refinancing is not as hard as you might think – especially with Mortgage House. All you need to do is get in contact with an expert, and they’ll be sure to gain an understanding of your situation so they can craft the perfect home loan for you.
But how do you know if you’re ready to refinance? Maybe you’ve never refinanced before, or you’re confident that you’re already on a decent plan. Whatever the case may be, these 3 questions will help you determine whether refinancing is the right move for you:
1. What are the terms of your current loan (interest rate, maturity date and type of loan)?
Before you can decide if it’s time to refinance, you need to review your current home loan in its entirety.
How much interest are you paying? When is the loan due to mature? What are the conditions? What lender are you with?
It might have been some time since you began your home loan, so refresh your memory on the specifics before shopping around for a better package.
2. How much equity is there in the property after accounting for loans, taxes and mortgages?
Next, you need to determine how far along you already are in the payment process. Refinancing does come with a few costs, so the duration you have remaining on your current loan could play a part.
If you’re not sure how to answer this question, a good mortgage broker will help you.
3. What’s your goal?
Like question 2, this is a question your lending specialist can help with. You may well find a different loan package with a lower interest rate, but there are many other calculations to take into consideration before determining if that package is “better”.
You may find that refinancing is as easy as switching to a more affordable package. But if you have crystal clear goals in mind, it’ll be easier for you and your lending specialist to work out the perfect home loan for you.
At Mortgage House, we’re no strangers to the homeowner’s journey. It’s a long (but rewarding) one.
But don’t worry, we can help with that.
If you’re thinking of refinancing your mortgage, you can contact us for advice about the best options for you. The cost of your mortgage can drastically affect your financial planning, so it pays to speak to the experts about it.
Click here to speak to us!