If your circumstances have changed since you first took out your loan and there may now be several ways you can improve the repayment terms of your current loan and save more money. Even small differences to interest rates can impact your long-term financial obligations.
There are many positive reasons to look at refinancing your current home loan and assess some of the benefits on offer such as:
- Lower interest rates
- Variable, fixed and split rate loans
- Consolidate debts
- Lower term of the loan (pay off the mortgage sooner)
- Access to the equity in your home or investment property
It’s important to do your research to ensure you’re making the right decision. An Finance And Property Specialist (FPS) broker can provide you with integral home loan comparison advice and will ensure you have all the correct facts and figures and will be getting the best deal.
When interest rates are low, it is an ideal time to assess your loan options before there is an increase in interest rates again. With lower interest rates you may also qualify for loans with features such as:
- Offset accounts
- Redraw facilities
- No fees
- Flexible payments
- Loan Portability
Loan features can offer future flexibility and options for managing your finances over the short and long term.
What does Refinancing entail?
Refinancing is the process of paying out your current loan and taking out a new loan. Refinancing can be done with your existing lender or through another lender.
You could lock in a lower interest rate and reduce your monthly repayments or you could secure your rate for a certain period and have the security of fixed monthly repayments.
Refinancing Using Equity
If you’re refinancing your existing loan to lower your interest rate, lower monthly repayments or to pay off the loan more quickly. Equity on your current home or property can be used to secure a new loan.
Contact the FPS team today on 0405 096 574 for your free home loan refinancing assessment.