Australian homeowners have been hearing it everywhere: "record low interest rates, now it the time to refinance". What does this mean for them? How could this help them? And should they refinance their home?
There are a lot of situations where refinancing could be very helpful for you, so here are the top 5 benefits to refinancing your home loan.Firstly, what is refinancing?
Refinancing is when one replaces their current loan with another loan, with either their current lender or a different lender.
Benefits to refinancing your home loan
There are a wide range of benefits to refinancing, the primary reason being your current home loan no longer meets your current needs. Other benefits of refinancing consist of:
- Getting a lower interest rate
- Lowering your mortgage payments
- Shortening the length of your loan and paying it off faster
- Switching from an adjustable-rate loan to a fixed rate loan
- Cashing out from your home equity for other potential investment opportunities
Of course, always talk to a financial advisor before making any major decisions regarding your financial situation. Article kindly provided by mortgagechoice.com.au