refinancing your home loan
Refinancing your loan is when you move your current mortgage to another lender.
With such a competitive home loan market and the process becoming easier there are many reason to consider refinancing:
- Unhappy with the service from your current lender
- Looking to consolidate other loans into one
- Rate or product offering
- Equity release – you can refinance when you have equity in your property. Equity is the difference between the amount of your loan and the value of your property.
There are many advantages and disadvantages to refinancing your home loan, you should consider all of the below before deciding whether it’s the right option for you.
advantages of refinancing
There are several advantages to refinancing a loan:
- You may be able to reduce monthly loan repayments.
- You can get access to better loan options.
- You can increase your loan and gain extra funds from your equity.
- You can lower your interest rate.
- Allows you roll other loans into one consolidated loan facility.
disadvantages of refinancing
While there can be advantages of refinancing your home loan, there are also potential disadvantages you should consider. These are:
- When you get cash out, this will increase your loan repayment and amount of your loan and decrease the equity in your property.
- May extend the term of your loan if you reset to 30 years.
- There can be cost / fees to move your loan from one lender to the other.
- The value of your property can come in less than you expected.
- If you consolidated short term loans and paid out over a longer time frame.
Before making a judgement if refinancing your loan will benefit you its important to consider the above information and discuss what advantage and disadvantages apply to your situation. We are happy to help you consider the options and, provided you qualify, we can nearly always get you a better loan deal.