Refinancing refers to the process of paying out your current home loan by taking out a new loan, either with your existing lender or through a different lender. You could get a lower interest rate and reduce your monthly repayments or you could fix your rate for a certain period, and have the security of fixed monthly repayments.
Potential Reasons To Refinance
Get peace of mind
To get peace of mind with a fixed rate, or to reduce your monthly payments.
Take advantage of different features
To select a home loan with more suitable features such as a redraw facility.
Consolidating other debts
To consolidate credit cards, personal loans or other debts to reduce your interest rate and monthly repayments.
Unlocking equity
To unlock the equity in your home to finance a renovation, or free up some capital for property investment.
When done properly under the right circumstances, loan refinancing can be very beneficial. However, there are drawbacks involved – namely the cost. The reasons for refinancing should be legitimate and the long-term savings should outweigh the short-term costs which is why Top Finance Specialists is the right company to assist you.