Undoubtedly, home buyers want to get the best mortgage rates, yet there’s also hesitancy around refinancing. Some people think it’s going to be a complicated and drawn out process, with the work needing to be done outweighing the benefits. After all, there were enough forms to fill out and terms and conditions to study the first time around right?
However refinancing is simpler than you may think. While it’s not able to be done immediately, it doesn’t usually take longer than a month to process. Most importantly, it will enable you to pay your mortgage off quicker. But that’s not the only reason why people consider refinancing. Others follow the refinancing route in order to access the equity of their property so they can borrow money for other purposes. Debt bundling, where you refinance to consolidate your debts, is appealing to some people as well.
Whatever your reasons for wanting to refinance are, your first step should be understanding what you’re currently facing and the change you want to make. Read through your current loan terms and conditions, as it may have been a while since you checked them. Refreshing them will give you a clearer picture as to what you agreed to and what you’re looking for.
If you organised your home loan more than six years ago, it’s especially important to check the terms and conditions to see if you need to pay an exit fee if you go elsewhere. If this is a requirement, don’t let it stop you from actioning a change—depending on how much you’ll have to pay out, it could still be cheaper in the long term to leave now.
Once that’s established, speak to a mortgage broker so they can find the best solution for you. They’ll ask you why you want to refinance and will be able to offer advice tailored to your situation. Your mortgage broker will also direct you in what you need to prepare in terms of paperwork and will assist you in bringing over your loan.
Having this support from professionals who are well versed in the area of refinancing will take the weight off your shoulders. The refinancing process doesn’t need to be taxing or confusing, so with better rates popping up, consider taking advantage of them.