Why refinance?
People may look at refinancing their mortgage for a number of reasons including:
Consolidating debt
Personal loans, car loans, credit card debt etc. are generally much higher interest rates than a home loan and benefits can be found by merging this under the lower interest rate of the home loan.
To save money by reducing interest rates
If more attractive interest rates are available then it may be worth refinancing to take advantage of lower interest rates.
To release existing equity
If you have existing equity (the difference between valuation and outstanding balance) you may be able to access that equity as cash through refinancing.
To restructure their loan
Mortgage loans can be structured in many ways ie. variable, fixed, split etc. as times change their may be reason for switching structures.
When to Refinance?
Everybody's situation is different and it's all about chasing the best deal, structure and services that suits you and your needs. Refinancing is a process that requires a lot of attention, so make sure you have the time available to work through and understand possible benefits and disadvantages of moving or staying.
How to Refinance?
One of the first things to look at is your existing loan conditions. For example are there any early termination or payout fees? Are there any penalties for paying out an existing loan with another? Also to compare against a new service know exactly what you have now, the comparison rate is useful here which is a single percentage figure that represents interest rate, charges and fees. Your Naruli Finance and Investments Finance Originator can help you with this.
Who to see about Refinancing a Mortgage?
Your Naruli Finance and Investments Finance Originator can help you by providing comparisons of a range of lender products.
Inducements
Getting a free holiday for changing lenders sounds attractive although in reality getting the right solution for your needs should be first on the list. Incentives/ inducements and honeymoon periods are short lived gains. Long term savings and flexibility would be a much more attractive proposition.
