How you can make the most out of refinancing!
As the cost of living is rapidly increasing, every Australian home owner is looking to save a little extra where they can and find the most cost effective interest rate where they can. This might get you thinking about your current loans and rates is where looking at refinancing can be a good option.
Before diving into the refinancing process, it's essential to grasp the fundamental concepts involved.
What is Refinancing?
Refinancing involves replacing your existing loan with a new one, typically with better terms. This can apply to various loans, such as mortgages, vehicle loans, or business loans.
When actually is a good time to look at refinancing?
There can be a number of reasons why Australians look at refinancing, perhaps you want to make some additional savings or maybe you want to pay extra off your home loan but your current loan prevents you from doing this without being penalised, we could go on.
Reasons to Refinance
Common reasons to refinance include lowering monthly payments, reducing interest rates, accessing cash, consolidating debt, and changing loan terms.
Types of Refinancing
There are different types of refinancing, depending on the loan type and your goals. For example, mortgage refinancing can be categorised into rate-and-term, cash-out, or streamline refinancing.
Evaluate Your Financial Goals
Before embarking on the refinancing journey, it's crucial to clarify your financial objectives and iIt may be helpful for you to consider the following questions.
What is your primary goal? Do you want to reduce monthly payments, save on interest, shorten the loan term, or access cash?
How long do you plan to stay in your current home or keep the loan? Your goals may dictate the ideal loan term and type of refinancing.
Do you have good credit? Your credit score can significantly impact your ability to secure favourable refinancing terms.
So how are we feeling about refinancing now?!
So there you have it, hopefully this helps you assess if refinancing will assist your situation and the best way to go about it! Still have questions? You can book a free discovery call in at any time with me here.
Until next time.
Sarah x
