As time passes, your needs may change. For example, you might want to move to a variable rate mortgage instead of a fixed rate mortgage, or vice versa. Maybe one of your peers got a better mortgage loan and you feel you could qualify for a similar product. If you want a better financing product for your home, Stark Finance can help you. Let’s take a look at some of the considerations to take into account when you want to refinance your home.
When Should You Refinance?
There are some typical scenarios when people refinance. Sometimes, there is a changed financial circumstance from the current home loan application. If you recently increased an increase in purchasing power, such as a better paying job, you might be able to find a home loan option that lowers what you pay over the life of the loan. Some people refinance because they are dissatisfied with their existing lender. Sometimes people refinance to get access to home equity so that they can make other types of purchases.
Here are some questions you should ask if you are considering refinancing.
- Does your loan match your lifestyle?
- Are you going to start a family? If so, is your home loan payment an obstacle to this?
- Are you looking for specific home loan features that your current product lacks?
- Do you want to renovate your home?
- Is your fixed rate loan about to expire?
- Would a lower interest rate help you make payments on time?
- Do you want to change from a fixed rate to a variable rate, or vice versa?
- Are you looking to invest some of your home’s equity?
Why Should You Refinance?
At the end of the day, refinancing is basically paying off your existing home loan and replacing it with another. Ultimately, the end benefit of refinancing is twofold, you can either save money or access money for something else. Here are the reasons you should refinance:
- Fixed or Variable Rate: With a variable interest rate, your payment may go up if your interest rate goes up because of the economy. Moving to a fixed rate might help you with a lower monthly payment. Conversely, with a fixed interest rate, you may find a lower payment on a new variable rate mortgage in good economic times.
- More Loan Benefits: Some loan products may lack specific features that you are looking for, such as redraw. If you make extra payments, you might want to access this money in the future for a college savings fund or other purchases. Stark Finance can help you find a loan with the specific features that meet your needs.
- Funding a Renovation: You might also want to expand the size of your existing home or improve it. You might need to simply increase your existing home loan.
Whatever reason you are looking to refinance, Stark Finance has you covered. We are the leading Melbourne mortgage provider when it comes to refinancing.