Refinance Your Home Loan – The Basics

New year, New Me!… It’s going to be MY year this year…
Have you been telling yourself this is the year for change? Well why can’t it be?

It’s the beginning of a New Year, which means now is the time to make those changes. What better way of doing so than finding out if you can free up some cash and save on your mortgage.

Now, more than ever, it’s important to watch bank interest rates and look at what’s happening in the market to ensure you’re getting the best deal when it comes to your home loan.

If you’re paying more than you should be, refinancing could be a great option to replace your existing loan and minimise those expenses. But before you jump on the home loan refinancing ladder, there are some things you need to know before you make the final decision.

What are you paying?

When I am speaking to people about their home loan and I ask them What rate are you currently paying on your Home Loan?, you would be surprised that most people don’t actually know. If this is you, you’re not alone.

Before you can make any decisions, you need to understand how much interest you are paying on your home loan. A simple call to your current mortgage lender will get you in the know very quickly.

What is your interest rate?

It’s important that you understand the terms of your current home -loan, including the interest rate you’re currently locked in with. Since 2012, interest rates have dropped significantly, so if you’re home loan is older than 4 years, you are probably paying too much.

Again, a simple call to your current lender to confirm your rate will help clear up any confusion you might have. Then, you can see how your current rate compares to those that are available to you now. The best way to do this is to contact me.

Your home loan is something that you should be reviewing every 12 months, so if you haven’t done so in the past year, then now is the time to do it. Especially, if you’ve got a variable rate. You’re well within your rights to ask your bank for a better rate if interest rates have dropped.

Is a change of lender right for me?

More than a quarter of consumers are not happy with their current lender, which means there is always room for improvement.

There are so many options to choose from when it comes to a home loan, that there is no reason for a lender to offer you a sub-par loan. If you are unhappy with your lender or the current terms of your loan, it might be time to consider a home loan refinance.

A new lender could be just what you need to kick off the new year with a bang!

But be wary. Your lender isn’t allowed to charge you an exit fee for breaking your home loan, there could be other fees associated with your refinance, particularly if you home loan is on a fixed rate. Read and understand the terms of your loan before you making any changes.

Your mortgage broker will be able to assist you with any questions and also find you the best deal, no matter what fees you might be charged by your current lender.

When all else fails, keep it simple

If you’re short on time or are happy with your current lender, just not your home loan rate, then it might be easier and simpler to just have a chat with your current lender about what they can do for you.

A lot of lenders will be happy to chat with you about renegotiating the terms of your home loan, so if the thought of looking for a new home loan turns your stomach, keep it simple and chat with your current lender first.

If you’re looking to change your current home loan, refinancing could be a great option for your situation. Check out my contact details or give me a call today on 0406 625 926 to find out how I can help you.

 

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