Have you been thinking about Refinancing?
Are you a home owner who is paying too much on your monthly mortgage?
You might need to consider refinancing, with the fluctuating home rates and marketing conditions that you signed up yesterday, may not be the right one for today. Refinancing can be the right option for getting the best from your investment.
Why refinancing is a good choice?
- Save money on your loans:
Even a slightly lower interest rate could save you huge amounts of money over the life of your loan and help you to restructure your loan to save on your regular repayments and work out ways to reduce the term of your loan. Refinancing will also help you find better ways to spend the money you save. - Consolidating your debts:
Are you paying off different loans? By using your home loan to consolidate your debt you can roll your personal loan, car financing or credit card debt into your refinanced home loan. This way you only need to worry about making one monthly payment- usually at a lower interest rate. - Take advantage of refinance savings:
When you are choosing to refinance you are not only saving the money on your interest, but in turn you will also be saving money on your monthly repayment and it would be great for your pocket, as you are freeing up some cash flow.
Refinancing Methods:
Refinancing can be done both externally and internally.
An external refinance is when a new home is taken with a new bank and the old loan account is closed. This often occurs when borrower is dissatisfied with the old bank or the bank does not provide a loan that suits the client’s need.
An internal refinance is where the debt is taken over within the same bank. In simple terms a new loan is taken and an old loan is cleared but it is done with the same bank. Again, this can be occurring due to a limitation of the loan.
Some lenders may want to win your business and will consider lowering any third-party fees associated with the new loan – such as title and appraisal fees or environmental reports. So, engage a specialist who can provide the right advice and lead you through the refinancing process.