Discover the 4 warning signs of the need to refinance your home loan

Discover the 4 warning signs of the need to refinance your home loan

 

We no longer do things the same way because of the pandemic. Some people’s financial situation may have shifted dramatically.

Possibilities include changing jobs or getting a raise. Maybe you’ve been able to save some money during the lockdown, or maybe you’re having a hard time making ends meet?

 

Instead of saving for an exotic vacation to New Zealand or Zambia, your priorities may have shifted to making your house a safe haven during a nuclear holocaust. We’ve got your back.

 

Reviewing your home loan now is advantageous for the following reasons.

 

There is only one lender you’ve ever dealt with.

The cost of borrowing is at an all-time low, making it difficult for lenders to compete. It pays to compare prices because there are many great offers to be found.

Long-term customers may be missing out on better terms because they’ve been with the same lender for so long. Call us right away if your interest rate is less than 2%.

Neither redraw facility nor offset account are familiar terms to you.

In today’s world, most home loans include money-saving options like offset accounts and redraw options. By using these tools, you can save money on interest and pay off your loan faster.

The way they operate

 

Accounts with a Negative Balance

Your mortgage is linked to a transaction account in this configuration. If you make a deposit, it will be applied to your loan balance and reduce the amount of interest you have to pay.

You owe the bank $400,000 but you have $50,000 in your offset account, as an example. You can see how this works. Only $350,000 will be used to calculate interest.

 

Facility for redrawing

You can make extra mortgage payments and possibly save money on interest if you use this loan feature. On top of that, you’ll have access to the money at any time.

 

Things have changed for you personally.

Is there anything different now that you have a mortgage? Do you have a better job now? Has the cost of living changed for you? Is it true that you’re aiming for different financial outcomes?

 

If you want to get the best deal on a home loan, you must consider all of these factors.

 

Debt payments are engulfing your life.

It’s possible that consolidating your debt can help you pay off multiple loans. Refinancing your mortgage and paying off your debt with some of your equity are both options.

 

The advantages are as follows:

 

Compared to other forms of credit, home loan interest rates are lower.

 

There will only be one payment due from you.

 

You can make the payments more affordable by spreading them out over time.

 

Additional repayments may be possible, allowing you to get out from under your debt faster.

 

It’s worth looking into, even if debt consolidation isn’t the best option for you (you may end up paying more in interest over the course of the loan).

 

Do you want to know more about this topic?

 

Certainly, our team be happy to look over your mortgage and see if you’re getting the best deal possible given your current financial situation and future plans. Get in touch with us as soon as possible!

 

Resource Data

Managing Through Challenges – Growth Warrior. https://growthwarrior.co/managing-through-challenges/

APR vs interest rate: What does this mean for … – State Farm. https://www.statefarm.com/simple-insights/financial/apr-vs-interest-rate-car-loan

 

 

 

 

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