What you need to know about a refinance of your home loan
We all want the best mortgage rates, but many tend to shy away when it comes to a refinance for their home loan. It’s often thought of as a complicated and lengthy process involving tonnes of paperwork. Who wants to go through that again right?
Well, a home loan refinance may actually be simpler than you think. Especially with the assistance of an expert mortgage broker. A refinance generally takes around a month to complete but the benefits are often worth it.
When you take out a home loan you’re generally in it for the long haul, paying it off over 30 years or more. But our lives can change so often during this time. You may find yourself in a different financial position and questioning if your loan still offers the features and flexibility you require.
There are a number of reasons why you should choose to refinance your home loan, including:
- Help you pay off your loan quicker.
- Allow you to access the equity in the property for other borrowing purposes.
- Help you bundle (or consolidate) your debts for ease.
Steps to a home loan refinance
1. Get to know your current loan
So you want to look into a home loan refinance? The best place to start is by familiarising yourself with your current loan terms and conditions. This will help give a clear picture of what you have agreed to and can be compared to what your current situation needs.
If your home loan is more than six years old it’ll be important to check if exit fees apply. If they do, don’t be discouraged. Depending on the payout figure it may still be cheaper in the long run.
2. Identify what you’re looking for in a refinance
Are you wanting to negotiate a cheaper rate, access some equity for an investment property, or maybe just consolidate your debts? you can do all of these things. Identifying what it is you’re looking for and your current financial situation will help your mortgage broker get the most out of your loan.
3. Refinance with a mortgage broker
A refinance of your home loan doesn’t have to be a burden. Whatever your reasons for a refinance are, mortgage brokers are here to help. Once you’ve gone through your initial terms and conditions and then identified why or what you would like to improve, speak with a trusted mortgage broker for expert refinance advice.
When you first took out your home loan you likely spent a lot of time researching to get the best deal. So it also makes sense to review your loan every now and then to ensure it’s still the best option for you.
For your interest – my broker profile
My name is John and I have been a mortgage broker for 5 years now. Previously I was working in both accounting and financial advice. I like to help people, and I found that the best way to give someone a big step up is to get them onto the property ladder. I place a lot of faith in bricks and mortar as it is simple to understand as a wealth creation vehicle.
My customers really appreciate the full range of services that I give them. During our time together, I can answer questions on finance, interest rates, loan structures, future planning, etc. I can also train you on getting ready for auction with auction tips including reading the crowd and bidding strategies. I can help you understand how to negotiate with real estate agents. How to deal with property developers and the games they play. How to deal with banks and the games they play. Which real estate contracts you should be concerned about. How to identify red flags for defective properties, and the list goes on.
Here is my youtube video : https://youtu.be/eNTgLkFENj0
I mostly run on referrals, and normally by the time I have finished helping for someone, they have referred one or two other people to me.
John Halloran 0407 903 654
Exceptional Finance East Brisbane