Understanding Mortgage Refinance
A Mortgage is a big commitment, and a major investment that is paid off over many years. It is vital that you do your research before you commit and sign a mortgage contract. However, no matter how much research you do, times will always change and so will your financial situation. If your financial position has changed, then finding the best time for a Mortgage Refinance could save you thousands of dollars.
A Mortgage Refinance means taking out a new home loan to pay off your old one. There are many potential benefits to refinancing, such as:
Better interest rate: you may want to consider refinancing your mortgage if you can secure a loan with a lower interest rate.
Freeing up Equity: If your house’s property value has increased, then a Mortgage Refinance could give you access to extra finance. This freed equity can then be used for investment or renovation purposes, adding more value to your house.
Consolidate Debts: A Mortgage Refinance could allow you to pay off some of your debts, including credit cards debts with high interest rates. This means that you could pay off multiple debts through your home loan, saving you both time and money.
The Best Time for a Mortgage Refinance
One of the most important factors of refinancing is timing. Refinancing can be very beneficial when interest rates are at a low point and the value of your property has increased. Taking out a refinance loan in this situation could give you access to equity that is locked up in your property, whilst reducing the amount of interest you’re paying.
Research is very important in finding the best time to refinance a mortgage, as you need to know how the property market has changed. The mortgage specialists at NSW Mortgage Corp can give you advice on whether refinancing your mortgage could save you money. For a free consultation, please call one of our friendly team members on 1300 137 778.