Buying

What To Know When Refinancing Your Home Loan

August 19, 2020

Are you considering refinancing but unsure on who to speak to or what is involved when it comes to refinancing your home loan?

Here at Funding force we always want to give our clients the best advice and share our knowledge with you.

Refinancing your home loans reaps many benefits and there are several reasons that you are considering refinancing. We will discuss the most common reasons we find that people want to refinance and what to consider when refinancing.

What does it mean to refinance?

Refinancing is quite a similar process to when you first applied for the original home loan. A refinance loan is a loan that pays out your existing home loan to create your new home loan with your new lender. It is a quicker process and less complex compared to when you initially first got your home loan.

Why Refinance?

Having a clear understanding of the purpose of you wanting to refinance your home will make the process much easier but these are the most common reasons we find as to why people want to refinance.

– Using the equity in your home to complete home renovations
– Wanting a better deal on your home loan e.g. better interest rate, lower fees, flexible repayments, more loan features
– Consolidate debt

What to consider?

As always when looking at doing something financially there are always things that you should consider when doing so. Although there are so many benefits involved in refinancing, we have listed the most common factors you should consider when doing so.

– Early exit fees on current loan (if applicable)
– LMI (Lenders Mortgage Insurance) you may be asked to pay that again if you’re planning on borrowing more than 80% of the current market value
– Compare the costs of staying with your current loan and what it would be to change.

To find out more about how refinancing can benefit you and to get the best deal contact us on 03-8372 2018

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