Refinance your loan for the better

A refinancing loan is a new loan that is used to pay off an existing loan. Refinancing normally occurs in the case an individual can secure a lower interest rate, change the terms of their loan or to access cash from their home equity. The process of refinancing your home loan can be complex, so Simplify Finance is here to make the process easier for you.

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.

The first step in refinancing your loan is to meet with us. In our initial chat, we ask you about your financial situation as well as your needs and goals. Once we’re better able to understand your circumstances, we research different lenders and loan options to find the best deal for you. Our mortgage brokers will then get back to you with a couple of loan options for you to review. Should you decide to proceed with the refinance, we will help you gather all necessary information and submit the application for you.

If a home loan refinance is something you may be considering, get in touch with us for an initial chat to discover your options.

Refinancing your mortgage comes with numerous benefits. If you took out a fixed-rate home loan during a time of high interest rates, you may be able to secure a lower interest rate and change the terms of your loan if you refinance. Other benefits may include shortening your loan term and getting rid of lender’s mortgage insurance (LMI).

For more information on the benefits of home loan refinance, book a call with us or fill out our contact form to chat about the benefits you may receive.

Home loan refinance has a number of benefits such as lower interest rates. However, there are also costs associated with refinancing your mortgage. Closing costs, pre-payment penalties and interest rate changes may work against you if you decide to refinance. So, if you are considering refinancing your home loan, it is important to weigh the benefits and risks carefully.

For personalised advice on your home loan and whether refinancing is right for you, book a call with us or fill out our contact form.