Refinancing lets you change your home loan to suit your circumstances. Whether you are looking to consolidate debt; carry out renovations; gain access to equity for investment purposes or if you just want a better home loan deal.
It’s not uncommon for people to be paying more interest than they need be for their home or investment property loan. A refinance mortgage home loan is invariably the best option to get out of this costly situation and, naturally, you want to borrow on the lowest interest rate possible while still benefiting from a quality loan that meets all your needs.
It may be that your circumstances or joint or single income has changed or that the ever-changing financial market and interest rates has made it possible to get a much better deal than when you took out your existing home or investment property loan.
Debt consolidation
Some home owners, faced with mounting debt from a number of sources, including credit card debt, can benefit from home equity loan refinance credit to consolidate their debts into a single monthly payment and potentially save hundreds a month by restructuring and combining the repayments.
Statistics show that Australian household debt is at record levels. And many people are paying more interest than they need to on their debt. What this means is that it can be difficult, cost a lot more and take a lot longer to reduce the amount owing.
If you have debts – especially those with very high interest rates such as credit cards or personal loans – it can be very wise move to consolidate them into one loan at a lower overall interest rate.
This has the twin benefits of saving you money and making it easier to track (and control) how much you owe.
When it comes to consolidating your debts there are a range of options available. Which one is the most appropriate for you depends on your individual circumstances and factors such as how much equity you have in your current home, the nature and number of your debts, your overall financial situation and your timeframe.
Renovations and home improvements
Home improvements have once again increased in popularity as people figure out that improving their existing home is a far more economical option to selling the old one and buying another one.
In many cases you can draw on the equity in your home to fund the improvements. After all, if you decide to sell your home, you have high agent’s fees eating into your profits and buying a new one means more stamp duty, moving costs and the hassle of shifting to a new home.
This is where a home improvement loan can be a better option.
Click here to read more about Renovations and Home Improvement loans.
Investing
Other reasons why you might consider home loan mortgage refinance also include if you intend to buy an investment property, or establish an investment share portfolio.
Most people’s biggest asset is the family home. As the years pass, your mortgage is paid off and the value of your home has increased to several times what you originally paid for it. This increased value, minus your loan balance, is called your home equity.
Banks are able to lend you money using your home equity as collateral, or security, for the loan so that you can access that value to do other things. Some people use this value in their homes to fund wealth building ventures such as property investment and share purchases.
Click here to read more about loans for Investors
In summary
If you believe home mortgage refinance could be the answer to your current situation and future needs, it’s worth checking with us to see what options may be available.
As you start investigating and comparing home loan refinance you will need to remember there may be costs involved in paying out your existing mortgage loan and establishing a new one, and to take this aspect into account.
We have access to hundreds of loans from 30 banks and lending institutions, and will be able to offer you a choice of mortgage refinancing options to ensure your loan refinance brings you maximum financial benefits.