Mortgage brokers in the Kwinana, Baldivis and Rockingham areas have enabled a lot of people to save money by refinancing their home loans. Here are five important benefits for those who decide to refinance.
Lower Monthly Payment
With record low interest rates, a new home loan can allow you to lock in a lower fixed rate. You can also obtain an even lower variable rate which could go lower in the future. If you obtained your loan while interest rates were high, you should talk to a mortgage broker and see what they can do for your situation.
Reduce Total Interest
While you will have to pay attention to costs and fees, you should be able to lower your total interest costs on your loan. At Smartline Rockingham, we will provide a full cost analysis to let you know exactly what you are paying.
Pay it Off Faster
If you bought your home when you were making less money, you probably can afford to pay a bit more than on the old mortgage. It is a little-known secret that, while you can use refinancing to lower your monthly payment, you can also use it to raise your monthly payment and pay off the home sooner. This is done by selecting a shorter term.
If your loan contains steep penalties for trying to pay it off sooner and you have the financial wherewithal, a shorter term may be exactly what you need.
Improved Credit Means Lower Rates
There is a chance that your credit is better now than it was when you took out your current loan. If it is, you should be eligible for lower rates and better terms than before because lenders have more confidence in your ability to repay your loan.
Make Use of Equity
If you have already paid off part of the principal, you have gained equity. If property values have risen, you have gained equity that way, too.
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