REFINANCING - THE SMARTER WAY TO LOWER YOUR HOME LOAN REPAYMENTS
- Written by Melanie Toye, March 8, 2012
Looking for a way to minimize your mortgage repayments?
In today’s world, a big home and an even larger mortgage are what many clients are seeking. Max and Sally have spent the last few years painfully paying off their mortgage. Instead of going on small holidays, they spend time at home saving every penny into their mortgage. And although this isn’t such a bad idea, they are starting to regret buying a home and are unhappy with their current lifestyle. While not actively living the life they want, they decide to research what is on offer. The term "refinancing" jumps out and they discover perhaps there is another way in paying a mortgage without succumbing to an ordinary way of living.
Max and Sally have always invested at their chosen bank since they were young; however is being loyal costing them money?
You could save hundreds to thousands of dollars by selecting a better financial institution to manage your home loan. Savings can be accumulated from a variety of measures such as, initial home loan set up costs to lower interest rates. Researching what other financial institutions can offer gives you the best starting point in saving you money.
This is what Max and Sally discover about refinancing and how they can get their mortgage back on track as well as their lives.
What is refinancing?
Refinancing your mortgage provides you with the opportunity to lower your repayments and the term of your loan. This allows you some freedom to enjoy your life. You can still pay a higher repayment than the minimum but if you want to take a break and put aside that extra money towards a holiday or another asset building venture, than this is one way to go about it.
You can refinance with your current lender or you can select a new lender that may be offering a better deal. Just make sure you have done a comparison test between the two before selecting your option.
Australian Mortgage Managers can provide you with these details and help you select the best mortgage for you
Another option for Max and Sally is to use their equity in their home loan as a deposit to the new loan, which in turn will lower their mortgage repayments.
Currently Max and Sally are on a variable interest rate, however while interest rates are low they are considering refinancing to a fixed rate. They also learn there are costs associated with starting a new mortgage that may need to be paid as well as any exit fees from the existing loan.
Now Max and Sally have researched the refinancing option, they are excited and ready to speak with an Australian Mortgage Manager to discuss further.
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