6 Helpful Tips on Home Loan Refinancing
If done the right way, home loan refinancing promises gains. Aside from a lower interest rate and faster repayment, you can also increase your equity, realign finances, and access better options. But before you renegotiate with your current lender or switch to a new one, you might want to consider the following tips:
1. Define your purpose.
Do you want a reduced interest rate or a consolidation of your debts? Perhaps you prefer to extend your loan for a lower monthly repayment or to shorten the loan’s duration.
2. Search the market.
Reach out to multiple home finance providers. Look for new offers, interest rates, repayment amounts and intervals, charges and taxes, duration of the home loan agreement, and product features.
3. Compare product features.
Determine which lender offers the best rate and benefits. Check also the additional costs like exit, start-up, new loan establishment, and settlement fees.
4. Calculate how much you can save.
Once you’ve gathered information from home loan providers, do the math whether you will save money if you opt for refinancing. Don’t sleep on the loan insurance and exit costs as you move to the next lender.
5. Check your financial status.
Make sure you have a regular income and prepare your bank statements. If possible, reduce your credit card’s balance, or close it down. It might affect your borrowing capacity.
6. Seek professional help.
Don’t hesitate to ask for assistance from a trusted mortgage broker who might have access to more competitive options. You can compare notes and select the best offer.
For more enquiries about home loan refinancing, call 03 9621 1450 and talk to us.