Mortgage Refinance Information
What is Mortgage Refinancing and or Debt Consolidation?
This is where you may be paying a higher interest rate with one Financial Institution and you want to lessen the interest rate to make it more manageable for repayments and also pay off your Mortgage sooner at another Financial Institution. Another reason for Refinancing may simply be to consolidate other debts such as personal loans, car loans or credit cards into your mortage to make repayments again more manageable.
If you are considering Refinancing then you must look very carefully if it is the right choice for you. Make sure you select a Mortgage Broker that will look at your current financial position and then your future financial position as sometimes refinancing may not actually be a wise decision unless you will save money over the long term. Refinancing could also be one of the best options you can make and can save you thousands over the life of the loan.
Is Refinancing a Good Idea?
At Finance Studio we take Refinancing seriously, it is always a important measure at least every 1 - 3 years to speak to your Finance Broker just to perform a FREE Loan Health Check. The main reason for this is to make sure that your current loan facility is suitable to your current personal situation. Everyone's circumstances change from time to time, and you need to have the best possible loan to ultimately get you owning your home sooner.
It may be cheaper to stay with your current Financial Institution and restructure your current loan or product.
Do you have less than 20% Equity? If so then you will have to pay Mortgage Insurance all over again. Let us work out the viability of doing this.
If you are considering moving Banks it is important that you look at the costs to exit your current mortage, you may have costs such as a Deferred Establishment Fee, Break Costs if your loan is currently fixed and other discharge fees.
Will you save money. Once you calculate all savings associated with the new incoming mortgage and all costs of switching loan you can then make an informed decision about how much you will actually save.
The length of your original loan term compared to the new incoming term. It would not be beneficial if you originally started on a 30 year loan term and had paid off 5 years of this term to take the new loan term back up to 30 years.
Speak to us TODAY about your Refinancing Options.