Mortgage Debt Advice - Refinancing

Are you considering refinancing the loan on your mortgage? In a lot of situations, refinancing can help you save money by reducing the rate of the current loan you are signed on to. But it’s important to note that this method does not work for all cases, so consider your options and reasons as to why you are looking at refinancing. Understanding how refinancing works and the process behind it is fundamental to what you would like to accomplish with your financial goals.

When it comes to mortgage loans, we understand how hard it can be to keep up with those constant loan repayments. Do you feel that your mortgage no longer meets your lending needs? Or maybe you know there might be a better deal out there for you! These thoughts are evident through the research provided by the AFG Mortgage Index, where statistics show that 39% of mortgages written by brokers were for refinancing.

What is Refinancing?

The process of refinancing describes a change of a home loan, either to a new lender or with an existing provider. The main point of refinancing is to get a new loan with a lower interest rates or less fees. It is also common to refinance when homes undergo renovation.

Should I Refinance For A Lower Interest Rate?

Consider these following questions; will you save on costs, will you keep the same features, and will you be able to put a timeframe on paying your refinancing costs?

A key reason as to why home owners choose to refinance mortgage is to secure a lower interest rate and reduce monthly repayments. Don’t overlook that refinancing comes with a cost of its own, so it’s important to weigh up the savings of refinancing against the expenses involved.

Should I Refinance to Consolidate My Debts?

Consolidating your finances under one home loan is a tactical move many people employ to save money and simplify their banking. However it’s important to note that debt consolidation is not suitable for everyone.

The most common reasons people consolidate debts are to:

  • Reduce debt payments
  • Manage one debt instead of having managing multiple debts
  • Save money through a lower interest rate rather than paying off debts with a high interest rate

The process of streamlining debt into one home loan provides an opportunity to reduce the amount of interest you pay on multiple debts. This includes personal loans and credit cards; so you can effectively manage your short term debts that have a higher interest rate. The simplicity of debt consolidation is that it can help households fold high interest rate debts into one manageable lower rate.

Investigate the costs involved of exiting your existing home loan to switch to a new one. There are usually annual or service fees attached on loans, so it’s important to know what charges are applicable during the life of your loan.

Want To Know More About Refinancing?

Make sure your bad credit refinance mortgage will benefit you financially. If you have any questions on this topic, our expert team at DebtFix can walk you through the process and see if refinancing is a suitable option for you! Contact our team today for a consult.