Are you one of the homeowners that thought about refinancing? It can be a great way to save money and adapt to changes in your life and finances. It’s essential to think about refinancing your home loan often, but how often can you and should you? This article will tell you everything you need to know about refinancing, including when and why you should do it.
Why should I get a new loan for my home?
Homeowners refinance for many reasons. Refinancing often saves money by lowering the interest rate. The interest rate you got a few years ago is probably no longer competitive. Even a little lower interest rate can reduce borrowing costs.
Refinance if your income changes. If you get a pay raise, you could increase your minimum loan payment to pay it off faster and save money. If your income drops, consider refinancing to lower your payments. This may make your loan last longer, but it can reduce financial stress.
How do I find out if my interest rate is still competitive?
OzBroker suggests that homeowners should research every 6 to 12 months to see how their interest rate and home loan compare to others on the market. You can quickly get things done by talking to us!
Oh no – my interest rate is too high!
So, you’ve looked around and found a better rate for your home loan. If your current lender is giving better rates to new customers, feel free to ask them for the new rate. If you want, our Home Loan Specialists can negotiate for you.
Remember that there is more to a home loan than its interest rate. Many home loans come with fees, like fees to set up the loan and fees every year, which can make the low-interest rate less important. Some costs come with refinancing, so it’s essential to figure out if it will still be worth it in the long run.
It may seem a lot, especially if this is your first time! But hey, don’t worry! This is our expertise, and we can always help you!
Contact us today to start the process of refinancing.