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.
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