 
|
Why Refinance My Mortgage?1. Assess Your Current MortgageIn basic terms, to refinance your mortgage simply means that you repay one loan by taking out another loan. In doing so, you can save yourself money and years off your home loan. It is important to do your research before deciding to refinance. You want to ensure that refinancing your mortgage will leave you in a better financial position with a home loan that suits both your requirements and your lifestyle. "A Mortgage and Finance Association of Australia (MFAA) survey shows that 88% of people who changed mortgage providers when refinancing their home loan found they were better off." "A Mortgage and Finance Association of Australia (MFAA) survey shows that 88% of people who changed mortgage providers when refinancing their home loan found they were better off." Mortgages are no longer a purchase that you make, set and forget for the lifetime of the home loan. In Australia, the average life of a mortgage currently sits at around 5 years. So it may be about time to take a closer look at your mortgage, put it through its paces and compare it to other contenders in the field. There are a number of reasons why you may want to refinance your mortgage: Make SavingsFinding a more competitive interest rate is a good reason to refinance. Do your sums first to ensure exit fees on your existing mortgage and other charges don't erode your gains. Many people's mortgage repayments are around half or more of their monthly income. So reducing these mortgage repayments by even one percent might mean you can afford to buy that new TV or save more for your overseas holiday. The savings can add up. Example: On a principal and interest loan of $300,000 over 25 years, monthly mortgage repayments at 8% are $2,315.45 while mortgage repayments at 7.7% are $2,256.15. By reducing your home loan even 0.3% you can save nearly $60 per month or $720 per annum. Renovating Your Home:If you are thinking of renovating, you may want to take advantage of the equity in your home to borrow against. Renovators might refinance to increase the size of their home loan and use these funds for the renovation. You may also choose to change it from a principal and interest loan to an interest only loan, thereby increasing cash flow by only paying the interest portion of the mortgage loan. Wealth Creation:Your mortgage is much more than just a home loan. You can use it as a wealth creation tool. Refinancing your mortgage with a home-equity loan allows you to tap into additional equity created by the growth in the property market in recent years. This is one of the most effective ways of borrowing to invest in the property market or other assets and assist your wealth creation and retirement strategy. We can assist you in creating wealth by using the equity in your home to establish a property portfolio through our specialised Mortgage House Private Clients division. Change in Your Circumstance:Life is full of change. When your personal circumstances change, say you have children and need to pay their school fees or you cease employment, get a pay rise, join the ranks of the self-employed or opt for a sea change, you may want to review and perhaps refinance your mortgage. Consolidate Your Debt:When credit cards, car loans or personal loan products get out of hand, consolidating all debts into a home loan can make repayments more affordable. Rolling all of your debt into one loan can help structure your repayments and help you rebuild your finances if you are serious about getting out of debt. Multiple repayments are replaced with a single, regular loan repayment - weekly, fortnightly or even monthly. However, rolling short-term debt into long-term debt means you will pay more over time, so be disciplined about your repayments. HANDY HINT: Mortgage interest rates are generally half credit card rates. But consolidating your debts will only save you money in the long term if you pay off the principal along with the interest. Reduce Your Loan Term:When refinancing your mortgage you find that you are able to reduce your minimum mortgage repayments each month giving you the choice to take the left over money or to add that straight back onto your loan, effectively reducing your loan term and paying off your mortgage sooner. In addition to this, you may opt for a home loan with an offset account allowing you to use the savings you have in a linked account to offset the amount of interest you pay on your mortgage, also reducing the amount of interest you pay and your home loan term. This is a good chance to work on being Mortgage-Free sooner! Are You Ready to Refinance?If you can answer YES to any of the following, then it may be time to speak with your friendly Mortgage House Home Loan Specialist about refinancing your home loan.
If you answered YES to any of the above, it's time to book an appointment with a friendly Mortgage House Lending Specialist. HANDY HINT: Mortgage House offers an efficient refinancing service. This can streamline the refinancing process and save you time and money. Where to go from here
|
|
- Home |
- About Us |
- Home Loans |
- Mortgage Broker|
- Client Log In |
- Partners |
- Mortgage Calculators |
- Apply Now |
- Careers |
- Contact Us
- Security |
- Privacy |
- Conditions of Use |
- © 2011 - Mortgage House of Australia