Before we look into mortgage refinancing, let us consider why you might want to do this. It might be that you wish to have lower monthly repayments, which can be achieved by re-mortgaging over a longer term, yet it is worth noting that a lower monthly repayment over a longer term will likely cost you more in the long term.
A Guide to Refinancing Your Mortgage:
Reclaiming Your Equity:
This is another good reason to consider refinancing your home loan, especially if you are over halfway through the mortgage term and have amassed a fair amount of equity. Many Australian homeowners decide to take out some of their equity, which could be used for any number of reasons. It might be to finance a home improvement, buy a new car, or even take that round the world cruise you promised yourself. If you would like to know how much equity you have amassed, there is a wide range of home loans Sydney offered by Mint Equity, one of the leading independent brokers who can help you to refinance your home. Dealing with an independent broker offers you a wider range of loan options, as the independent broker is not tied to any particular lender, which allows them to source the loan that best meets your needs.
Crunch The Numbers:
Once you have decided that re-mortgaging is right for you at this time, you need to work out the costs, and an independent broker can help you with this. Luckily, their service is free to borrowers, as they receive a small remuneration from the lender, and you really should take advantage of their free advice.
Checking Your Credit Score:
Basically, the better your credit score, the lower the interest rate, and you can easily find out your credit score from free services available online, which will help you to decide if now would be the best time to proceed. If, for example, you have a couple of small outstanding loans, it might be best to pay them off prior to applying for a re-mortgage, as the lower interest rate is obviously preferred.
Look For Options:
There are literally hundreds of lenders in Australia, and the best way to reach them is to talk to an independent mortgage broker, as he has extensive connections with the best lending institutions, and can, therefore, search on your behalf. There could be quite a difference in interest rates, not to mention the type of loan, and with an expert in your corner (which you don’t have to pay for) you will be able to choose from a wider range of offers.
Many people decide to refinance their home, and with the help of an experienced independent mortgage broker, you most definitely have the edge. Crunch those numbers, and if it is best to wait a year, that isn’t so long, and the benefits might be major. The broker can help in many ways, and once he knows your needs, he can then source the right lender, and the great thing is, he’ll do that for free!