When Should You Refinance?
Refinancing can be a borrower’s secret weapon in making their mortgage easier to manage. The act of refinancing is paying off the loan you have already so you can replace it with a different one. This is done in order to drop your interest rate from its current number, make your repayment term shorter, change the type of loan you’ve taken out, help manage finances better, and give you more wiggle room.
If you can drop your interest rate by a small percentage that can even make a world of difference in the cost of your overall loan. A better interest rate can save you money in the long run and make the mortgage repayment less of a pain. Dropping your rate from six percent to five can drop your costs far more than you’d think.
Your monthly payment can also drop a little if you’ve been able to shorten the term of your loan. Most people do this so they don’t have to take as much time to pay back their mortgage, getting it over with quicker and allowing them to financially plan better for their future. While the monthly payment change isn’t dramatic, the difference it makes is more significant than you’d expect.
What Refinancing Does For You
In addition to helping you save money and time, refinancing offers you a chance to reevaluate your loan and figure out if you want to change the details of it. Your finances can be loosened up a little once you reconsolidate your loan and prevent an interest rate rise in the future. Your broker will be able to help you figure out the multitude of benefits that come with refinancing.
Mortgage House Australia has helped countless borrowers refinance and restructure their loans to benefit them in their financial futures. We take the utmost pride in helping our borrowers reach their financial goals without the struggle.
At Mortgage House, we’re no strangers to the homeowner’s journey. It’s an exciting and very rewarding one. If you’re thinking of applying for a home loan, you can Apply Online today to get started!