There are a few factors to consider when deciding whether or not to refinance your home loan. These include:
- Interest rates: If interest rates have fallen since you took out your original loan, you may be able to save money by refinancing to a lower rate. However, if interest rates are rising, you may want to wait until they start to fall again before refinancing.
- Your financial situation: If you have a stable income and can afford the higher monthly payments, refinancing may be a good option for you. However, if your financial situation is uncertain, you may want to wait until your finances are more stable before refinancing.
- Your loan terms: If you are unhappy with the terms of your current loan, such as the interest rate, the term length, or the monthly payments, refinancing may be a good way to get a better deal.
- Your closing costs: The closing costs associated with refinancing can be significant, so you need to make sure that the savings you will realize by refinancing will outweigh the closing costs.
However, it is important to note that refinancing your home loan will also vary depending on your individual circumstances, so it is important to speak to a mortgage broker to receive personalised advice.