You may have some are compelling reasons to refinance but are unsure when to hit the trigger switch. The idea of refinancing your mortgage can be a bit daunting, but it is important to realise that refinancing your loan at the right time can not only lower your monthly payments and help with your monthly budget, but it can also save you thousands of dollars in the long run. On top of this, refinancing you loan offers the opportunity to tap into new features such as offset accounts and the ability to have your salary paid directly into the loan.
YOU’RE NOT TOO LATE.
For years now, we’ve been hearing that interest rates will be on the rise, and although there have been some small increases, you’re still in a great position to drastically lower your interest rate. The general rule is if your mortgage interest rate is more than one percent above the current market rate, you should consider refinancing.
IT’S NOT TOO TIME CONSUMING.
Don’t brush off refinancing just because it seems like a long and daunting process. An initial call with a mortgage broker to see how rates compare will only take a few minutes. The refinance process will also be more streamlined than when you applied last time as lender technology has improved the speed and agility of the application process. And besides, isn’t the amount of money you could save worth the time and effort?
INTRODUCTORY RATES CAN BE REFINANCED, TOO.
Seeing your rates increase after the introductory period can be incredibly stressful and place a squeeze on your budget. Many people assume they’re stuck, but as long as you are past the two year claw-back period, these loans can also can be refinanced, just like fixed-rate mortgages. You can even switch to a shorter term fixed-rate mortgage, such as 15 or 23 years. The longer you’re planning to stay in the home, the more sense it makes to look into refinancing.
GET AN OBLIGATION-FREE HOME LOAN ASSESSMENT
Devoting 15 minutes of your time to reviewing your home loan could save you thousands of dollars, or at the very least, offer you peace of mind that your existing home loan is still meeting your financial goals. Learn more.