28 Mar 6 Reasons to Refinance Your Mortgage
Thinking of refinancing your mortgage? Here are some reasons to do it.
1. Shortening the term of your loan.
If you have a 30-year mortgage, refinancing can be one positive way to help you shorten the term of your loan. If you talk to an experienced mortgage broker who can help you secure a great rate, you might find that a 20-year mortgage is not much more expensive than the 30-year loan payment you’ve been locked down to.
2. Lowering your interest rate.
With interest rates so low, there are lots of great deals available and a trusted mortgage broker can help you find them.
With the right refinancing deal, you could save tens of thousands of dollars – simply by filling in a few forms and choosing a new lender.
3. Lowering your ongoing payment.
If cash flow is an issue, lowering your mortgage payment could free up hundreds of dollars each month – money you could save or invest.
Although increasing the term of your loan could add to the overall amount you repay, might make sense in your personal situation – even if it just for the short-term.
4. Switching from a variable rate mortgage to a fixed-rate loan.
A good mortgage broker can give you the right advice about whether switching from a variable rate to a fixed rate mortgage is the right thing for you.
Locking down a low, fixed rate while rates are so low can protect you from rising interest rates in coming years. A fixed rate also helps you budget more easily each month.
5. Renovating your home
If there is equity in your current home loan, you might be able to refinance to cash some of it out – and use those funds to add more value (and enjoyment) to your home.
This could be adding that extension for your growing family, doing some quality landscaping, installing a pool, or finally doing that new kitchen/bathroom you’ve been waiting for. Yes, it will add to your mortgage (just when you thought you were paying it down) but if it adds to the live ability of your home – and adds re-sale value too – it could be money well spent.
6. Building your property portfolio
If you own one property, using the equity in your home loan can help you find the funds you need to buy another property – and start creating an investment property portfolio.
This might mean buying an inner-city apartment, or a small family home in an outer suburb. By doing your research (talk to a real estate agent or buyer’s advocate for solid tips about growth suburbs and areas that promise a solid rental return), you could release equity that might help you create a solid platform for your secure financial future.
Can I quality for refinance?
Not everyone is eligible for refinancing, so it’s important to talk to an experienced finance broker to do your research before you plan your next move.
Not ready yet? guidance from a professional refinancing specialist can help you understand what steps you need to out in place to get ready, so you can get smart with your money and make it work for you.
Thinking of refinancing your mortgage?
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*Disclaimer: This blog is generic in nature. All financial and investment decisions should be considered wisely and based on your personal and financial circumstances. Seek proper advice before committing to any course of financial or investment action. This is not deemed as advice.