Mortgage Refinance Loans
Whether you need extra money for investments or renovations, you would like
more flexibility or are just unhappy with your current lender – refinancing may
be the right solution.
Some of the potential benefits to you from proceeding with refinancing your
existing home loan are
- better interest rate or a more favourable loan term;
- reduction in monthly repayments by extending the term of the mortgage;
- consolidation of your other existing debts such as personal loan, car loan,
credit card debt etc., into your mortgage;
- revaluation of your property to facilitate the draw down of the increased
equity for home renovation, investment, business or personal purposes.
You do however need to consider the following in making your decision:
- Payout Penalties imposed by your current lender. These can be quite high
especially if you have recently taken out a fixed rate or a Honeymoon loan. If
this applies to you, it is best to wait until you are out of the penalty
period.
- Your outstanding mortgage. If your balance is quite low and you do not
intend to draw out any of the available equity in your property in the immediate
future, then Refinance may not be cost effective in your
circumstances.
It is always best to calculate the savings anticipated from the proposed
refinance to the additional costs you are likely to incur from this process
before making any final decisions.
