Refinance

Refinancing is one of the best ways to change the terms of your home loan. Refinancing your home loan may be very rewarding. When refinancing, you get a new loan from your current or new lender that may improve your financial position. So why exactly would anyone want to refinance their home loan? The reasons may vary. 

4 Reasons Why You May Want To Consider Refinancing Your Home Loan 

These are some of the more compelling reasons why you may want to refinance your home loan:

• Save more by cheaper interest rates and fees: Strong financials and a good credit score will qualify you for a lower interest rate on your home loan. While you cannot change the terms of your original loan, you can refinance with new terms and a lower interest rates. Even a marginal rate reduction can save you a good amount over the term of the loan.

• Pay off your mortgage sooner: By refinancing, you could have better repayment terms or better features. If your income has increased, refinancing allows you to increase your monthly payments. This will shorten the loan term so you pay off your mortgage earlier, saving you a significant amount in accrued interest.

• Helps you out when you’re experiencing financial stress: Maybe you’re expanding your family and need the additional funds. Or your income has decreased, and can’t afford your current mortgage payments. Whatever the reason, refinancing allows you to lower the payments, making them more affordable and reducing the risk of default.

• Consolidation of your debts: By refinancing, you would have the option of consolidating your various loans. Consolidating your personal debts/loans allows you to bring all your smaller loans together into one and could mean you could end up paying less in interest and fees. It could allow you to take advantage of a good deal with lower interest rates or fees, and simplify your commitments by having a single repayment.

Challenges Involved With Refinancing Your Home Loan

While refinancing can help you change the terms of your loan to better suit your changing personal and financial circumstances, it’s not a straightforward process. The terms, conditions, interest rates and even eligibility requirements vary widely from one lender to another. 

The first thing to do is to find a lender that whose requirements you meet and whose terms and interest rates best suit your needs. With hundreds of home loans around Australia, choosing the right one can be a hugely laborious and time-consuming task. One way to reduce the stress of refinancing and make the process easier is by working with an expert mortgage broker. 

Why SJ Mortgage Solutions Is Your #1 Choice For Refinancing Home Loans

At SJ Mortgage Solutions, we know the obstacles our clients face when trying to refinance home loans. When you work with us, we first help you understand your refinancing options, interest rates, and monthly repayments. We also help you compare interest rates and refinancing fees and calculate your monthly payments as well as your total savings. All of these will help you make informed decisions when choosing monthly repayments and a loan term that aligns with your current financial situation as well as your long-term financial goals. 

We have access to a wide network of lenders and will help you find the best lender for your particular circumstances. Call us today to find out more about the benefits and process of refinancing and how SJ Mortgage Solutions can help you.