Can Your Local 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. You would only consider this if it was advantageous to your current situation. There are many variables that need to be considered. Some things that need to be considered if refinancing would be the interest rate, the term of the loan, and the reason for refinancing.
People do look at refinancing for quite a few different reasons. One may be to save money by lowering their interest rates, sometimes to access equity for home improvements, sometimes to consolidate debt, sometimes to invest and sometimes to simply help speed up your personal goals.
As always, there can also be some down sides to refinancing, such as costs involved with switching and having the time to deal with the paperwork. That’s where Perth Mortgage Brokers Loan Monster can help by streamlining the process and assisting you make a decision to see if refinancing will work for you.
As touched on above, here are some of the many reasons people choose to refinance.
- Release equity for home improvements, investing or personal goals
- Lower interest rates that may save you money
- Specific product features that you don’t have on your existing product eg) offsets
- Cost reduction – cheaper fees
- Looking for better service
Below are some fees you need to consider so that you can weigh up what you are likely to save and what you are likely to spend when refinancing!
- Bank fees (Application fees, valuation fees and settlement fees) They vary greatly between lenders and your Mortgage Broker in Perth will be able to help you navigate the marketplace and may also be able to negotiate the fees.
- Exit fees – On 1 July 2011 the government outlawed “early termination fees” so they shouldn’t affect many home loans today.
- Stamp Duty and fees – Stamp Duty is charged in some states and there can be waivers available in certain circumstances, such as First home owners loans. Your Mortgage Broker should know this.
- Fixed rate break costs – if you are in a fixed rate contract there may be fees to break that contract.
- Discharge fees – basically this is just a cancellation fee of the mortgage at your current lender, usually between $0 to $400.
- Lenders Mortgage Insurance may apply if LVR is over the lender threshold.
Loan Monster in Fremantle can perform a health check of your current situation. To discuss whether your local Perth Mortgage Brokers can assist you further call today on (08)93364489 or visit www.loanmonster.com.au right now.
* 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