Why refinance your mortgage?
You may wish to refinance for one of the following reasons:
- Home improvement purposes – remodelling, refurbishment, renovations, installing a pool or deck, or adding outbuildings.
- Debt consolidation – which will assist you in paying off credit cards, store cards and other such loans.
- Saving money – refinancing to a mortgage with a lower interest rate or reduced fees will allow you to save money.
- To access new functionality – you may be seeking new loan features that are more suited to your existing situation, for instance, switching from a variable rate to a fixed rate, or choosing to add an offset account.
- To access equity in your home – which could provide a much cheaper road than leases or personal loans for buying a new car, going travelling or covering the ancillary expenses of purchasing an investment property that might otherwise go on a credit card.
What will it cost you to refinance?
Refinancing has the potential to save you and be very valuable as it allows you to access the equity you have in your property, pay off debt or save money. However, there exists the potential for fees (both direct and indirect) that you should be conscious of before you decide to refinance.
Prices and fees involved with refinancing a home loan, investment property loan or commercial property loan may include:
- Application, establishment and registration fees
- valuation fees
- Mortgage insurance (depending on the loan-to-valuation ratio).
- Current loan fees
- Early payment or settlement penalties and fees
- Discharge fees.
While refinancing can save you cash, you can also ultimately pay more interest over the life of the loan if you add extra time to your existing loan period – so choosing the right structure and products for your circumstances is critical. Naritas can help you with your refinancing needs. Live Chat with a Naritas expert now, or call us on 1300 558 887.