To Refinance Or Not?

Buying your first home can seem complicated but with the right
The difficult question for any budget conscious home owners or
investor is when is the best time to refinance my existing
loan/s?
The traditional view is to only refinance when you are
undertaking renovating, purchasing a new property, investing in
another property or when there is a sudden charge in interest
rates
An alternate view to this and an option that has become more
popular in resent years is to periodically look at refinancing
options to ensure that you’re getting the best deal and service
on your existing loan
The demand for refinancing has largely been driven by interest
in debt consolidation and heavy discounting by lenders in
standard rate and fixed loans
The tradition view of remaining with the same lender until the
loan is paid off has been replaced with borrowers seeking the
best loan for there needs at the best possible rate
The benefits of refinancing include:
Securing a reduced interest rates and saving money in interest
payments over the life of the loan
Provides the ability to make one fortnightly/monthly repayment
(in the case of debt consolidation)
Remaining with your existing lender may seem the easiest option
But when you compare your current loan with other loan options
you often find that refinancing is a better option overall
The things to include when investigating your refinance options
include:
If there are any significant pay out penalties to get out of
your current loan?
Application fees and other cost associated with establishing a
new loan (these can include -legal costs, lenders mortgage
insurance, on going fees, early termination fees etc)
Researched the products available thoroughly?
Is the new loan more flexible (Does the new loan offer
additional payment options, redraw facilities, split facilities,
extra features etc)?
By refinancing with a lender that offer better rates or more
flexible services you could save thousands over the life of your
loan

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