Tips in Knowing When Is The Best Time to Refinance a Mortgage

Tips in Knowing When Is The Best Time to Refinance a Mortgage

Mortgages are generally the most scary part of buying your first home. There are literally 1000’s of lenders to choose from, and not all of them are equal. Discovering that you have signed up with a mortgage provider who doesn’t have your best interests at heart can completely sour what should be a very rewarding experience. Mortgage refinancing allows homeowners that are unhappy with their current lender to move their home loan to a more suitable lender. If you are wondering when it might be time to refinance your mortgage, here are some common situations we come across ;

Unhappy with your current lender

Your lender may have seemed like the best choice when you took the mortgage, but things can change so fast your mortgage terms may not change to suit your situation. It pays to shop around, you can easily find other lenders who can compare your current home loan rate with more competitive options. This can also extend to better customer service, rewards, and interest rates.

Consolidating your debt

If you owe money to other lenders in the form of personal loans, car loans, or credit cards, then you may be better off rolling them into the mortgage. Paying each of these debts individually can cost you more money in interest in the long run. Consolidating your debts into one mortgage makes it easier to manage your repayments and will generally come with a reduced interest rate, meaning you pay less money over the life of the loan.

Funding a home renovation / extension

For a lot of us, renovations or extensions are a good way to increase the value of our property. Funding these types of works is often extremely expensive, which is why a lot of people choose to either refinance their mortgage / take out a loan against the equity in their property.  

Reducing your mortgage payments

Last but not least, mortgage refinancing may be able to give you a lower interest repayments. Whether you take a new loan over an extended timeframe or switch to a fixed interest rate there could be massive savings just around the corner.

Still not quite sure if your ready to consider refinancing? Maybe you have some more questions that we haven’t been able to answer in this blog? Our team of experts are happy to provide general advice and information over the phone at no cost!