Home Loan and Mortgage Refinancing Tips From Loan Monster
What is equity? This is the difference between what your house is worth and what you owe on it.
= EQUITY $400,000.00
So why is this important? Well, it means you can use the equity in your Perth home effectively to do many things such as, renovate, consolidate debts, purchase another property for investment or simply improve your lifestyle. Speaking to a Perth Mortgage Broker such as Loan Monster can help you with your refinancing options.
1. Having equity in your property can allow you to consolidate debts, this means if you have found yourself under a mountain of debt, you can use your equity to bring all your debts ie) personal loans or credit cards, into the one home loan. Therefore, you have one repayment at a lower interest rate which will help to save you interest over a period of time. (Note that you invariably will be taking your short term debts out over a longer term)
2. Equity can increase your wealth by purchasing another property – most likely an investment. The equity could form the deposit on the new home or buy it outright depending on how much equity you have. The benefit to you is now you have 2 properties increasing in value and also an additional income stream (rental income from the property).
3. Equity can be used to go on a holiday, to improve your wellbeing and situation, or you could even purchase a new car – no matter the reason, equity will assist your current situation for the better.
Most lenders will allow you to borrow up to 80% of your properties worth. Note that if you lend above 80% you will be charged Lenders Mortgage Insurance.
If you believe you have enough equity in your home, then please give Loan Monster a call and one of our Mortgage Brokers will be happy to do an upfront valuation to give you an idea of what you can do with your equity.
Please visit www.loan-monster.com.au or call on (08)93364489 today.
* The information contained in this website should not be taken as constituting personal advice. We recommend that you seek professional assistance before acting upon any information provided or linked on this web site.
Tuesday, March 14th, 2017 at 2:01 PM
What is equity? This is the difference between what your house is worth and what you owe on it. For example, Value $500,000.00 Owe to the bank $100,000.00 = EQUITY Read More…
Monday, November 28th, 2016 at 1:54 PM
Purchasing your first home is one of the greatest investments that you will make in your life. However, sometimes life doesn’t always go to plan and you may find yourself Read More…
Monday, November 28th, 2016 at 11:41 AM
Refinancing refers to taking out a new loan over your existing property with a new financial institution or updating your existing home loan with your current financial institution. When switching Read More…
Tuesday, September 6th, 2016 at 7:54 PM
What is the difference between Principal and Interest Home Loans and Interest Only Home Loans? If you own a home or are looking at buying a home, chances are you Read More…
Friday, September 2nd, 2016 at 10:31 AM
Can your Perth Mortgage broker help save you money by refinancing? Refinancing is a term that is used that simply means swapping your existing home loan to another home loan. Read More…
Monday, August 29th, 2016 at 11:19 AM
Building a Deposit? Perth Mortgage Brokers Loan Monster can help. Are you looking to purchase your first home but don’t have all of the deposit? What can you do? What Read More…
Wednesday, August 24th, 2016 at 1:37 PM
Refinancing – Is it right for you? Mortgage Broker Perth When interest rates are low it can be tempting to look at refinancing your home or investment loan. You may Read More…
Wednesday, August 24th, 2016 at 10:13 AM
Buying your First Home? Mortgage Brokers Perth How much will I be able to borrow? This question is often asked when it comes to purchasing your first home. The technical Read More…
Wednesday, August 17th, 2016 at 2:14 PM
Have you ever wondered what a Perth Mortgage Broker does and how they make your home loan experience easier? How do we make it easier? It is our job at Read More…
Tuesday, August 9th, 2016 at 3:49 PM
The Right Time to Refinance – Mortgage Brokers Perth When is the right time to look at your refinancing options on your home loan? Experts agree that the ever-changing home Read More…