Home Loan Refinance
Years ago, most Australian home buyers
expected to spend years paying off their original house mortgage.
Today, the average length of time paid on the same mortgage
is only 4–5 years. The popular home loan refinance strategy
is a logical and practical choice for many people for a variety
of reasons. Since such refinance loans are usually offered
at lower interest rates, holders can realise a significant
savings over time, especially if the original mortgage rate
was considerably higher. For those whose circumstances have
been adversely affected since they first took out their mortgage,
refinancing may be the only way to lower monthly payments
and protect the property from being repossessed.
For some borrowers, a home loan refinance
is the perfect opportunity to have restrictive parts of
the original loan agreement rewritten. This new flexibility
can be an important factor in choosing to refinance a loan.
Also, since refinance loans can be used to tag proposed
renovations to the original mortgage, borrowers can enjoy
lower interest rates for their remodelling projects and
spread the cost of the new improvements over the lifetime
of the loan.Debt consolidation loans enable mortgage holders to consolidate their other loans such as personal loans and credit cards into the new mortgage.
During the process of applying for a home
loan refinance, the house’s appreciation will be re-evaluated.
Higher values represent increased equity value for the home
buyer who may want to draw on that to pay off other bills,
to fund schooling, to plan a special vacation, or to make
other large purchases. Borrowing from the equity is a practical
way to keep the interest rates low.
While millions of dollars are currently
available for home loan refinances and the process is straightforward,
it may take some time to process, and there will be associated
fees that can be quite expensive. A reputable broker will
do a thorough financial analysis to verify whether or not
this move is in the best financial interests of the applicant.
Armed with such helpful information, Australians are encouraged
to consider a home loan refinance that is right for their
circumstances and situation.