5 Benefits To Refinancing Your Mortgage

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

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