Refinancing
- 2. Why use a broker to refinance ? Do you have a need for a mortgage refinance? Are you in the position where you are looking for a ‘bad credit’ refinance? There are many financial providers who lend to people wishing to refinance Lenders have differing criteria for an application to be successful Lenders have differing terms and interest rates You probably do not have the time to extensively research the market before committing to a refinance option, your broker will do this for you There are several reasons refinancing can be a great option ~
- 3. Refinancing your mortgage to include a lower interest rate can significantly lower the amount of your monthly repayments and also decrease the amount of money that you are paying over the life of the loan If you are currently financed at a variable rate you may wish to consider refinancing to lock in at a fixed rate You may wish to refinance to access some of the equity you already have in your property – lets say your house value has increased by $80 000 and you have paid off $20 000 in mortgage principal , you have built up $100 000 in equity. However the amount you can borrow is determined by the ‘loan to value’ ratio (LVR). The LVR tells you how much of your home equity you can tap into You can then use the released equity to finance another property purchase, go on a holiday or whatever you may wish.