What you need to know when refinancing your Home Loan
Your home loan is a little like life insurance. It's a required 'commodity', but something that is dreaded, dealt with at the moment and then shelved for another day. Unfortunately, as a mortgage broker, we see this all too often and see people paying large interest rates and paying for unnecessary features and benefits because they simply haven't reviewed their home loan, their lender hasn't reconnected with them or because they don't quite understand their home loan and mortgage.
As your mortgage broker and home loan analyst, we are here to help you with your home loan. We are your advocates and tell your story.
Let's take a quick look at refinancing.
1.Reasons to refinance Refinancing is the process of taking out a new loan and paying out your old loan. There are numerous reasons and benefits to moving to a new home loan. These could include improvements to your current repayments, changes to the term of your loan, whether you want to draw on the equity for home improvements or a new back yard pool, or simply to chase improved features and interest rates.
2. Costs to refinance Each lender and product can vary in their costs to refinance, however a good mortgage broker will outline these costs and compare them to the potential savings that you can achieve by making the switch. This comparison is imperative to the overall benefit to the customer, and should be outlined with full transparency and detail. Some lenders offer promotions to encourage a refinance to their products and your mortgage broker should source these and access suitable promotional offers or fee waivers. Your mortgage broker will be able to update you on any government charges in your state or territory.
3. Will I have to pay mortgage insurance again? If you had to pay mortgage insurance previously and are still borrowing more than 80% of the value of your security property, chances are you will need to pay new mortgage insurance. As this is an insurance for the lender, it’s a mandatory requirement and a cost you may not be able to avoid.
Ask your mortgage broker if you will need to pay mortgage insurance as it may be more suitable to stay with the same lender, but change products.
4. New and old features and fees Be sure to discuss the features of the new loan and ask your mortgage broker to compare them to your existing loan. Not all loans come with offset features, redraw facilities or allow extra repayments. Some products charge you a monthly fee, an annual fee, or no fee at all. Understanding your exit costs as well as your ongoing costs is important to ensuring that the product is right for you.
5. Is it better to go it alone, or to use a broker? Remember that as a mortgage broker, we work for you. We are professionals that work for you, but paid by the lender. As a mortgage broker, we are home loan specialists and able to source a multitude of lenders and products, all offering different promotions, products, fees and rates.
As a home loan analyst, It is our job to sieve through the maze of options and deliver to you a suitable product / or home loan products that suits your needs. We will guide you through the entire process, explain the forms that you are signing and help you through the journey.
"We got Amanda (aka Mandy) to review our mortgage. The best thing we ever did! I have never come across someone so professional and honest. We highly recommend Amanda to whoever is thinking of reviewing their mortgage"
"We would highly recommend using Amanda. Not only was she a pleasure to work with, but she has a wealth of knowledge and is extremely professional"
GET THE RIGHT ADVICE AND ASK THE RIGHT QUESTIONS
MoneyQuest Mermaid Waters is a comprehensive mortgage broker and home loan anayalyst. We provide residential and commercial property mortgage loans, business finance, car and equipment finance.
Call Mandy on 0409 715 577 for a no obligation appointment to discuss your specific requirements and position.